Sanyo Trading Integrated Report 2023

SANYO TRADING CO., LTD.
2-11, KANDA NISHIKI-CHO, CHIYODA-KU, TOKYO
101-0054, JAPANTEL: 81-3-3518-1111
URL: https://www.sanyo-trading.co.jp/eng/home/
Published: May 14, 2024

Sanyo Trading

Integrated Report 2023

Sanyo Trading Integrated Report 2023

We embrace change

Corporate Brand

to evolve our business to keep everyone
healthy and happy.

At Sanyo Trading, we don’t just sell merchandise.
We only do business in which we can add value andmake a difference.
Instead of being a box mover, providing materials, products,

We relentlessly pursue

and solutions most relevant to your enterprise needs isindustry-leading, cutting-edge technologies.

our commitment.
Trust is what it takes to succeed in business.
That’s why we listen to you and deliver the best solutions forthe success of your business flexibly and timely—and in the
belief that, by doing so, we’re bringing a brighter future topeople around the world.

We offer fresh new ideas
We rise to the challenge

for achieving a sustainable society andkeeping the earth clean and green.

of leveraging our strengths to pursue ourunique and proven business models.

1Origin of Value Creation

Origin of Value Creation

Sanyo Trading Integrated Report 2023

About Sanyo Trading

The New Sanyo Trading —— Aiming to be a 100-Year Company

1

As Sanyo Trading celebrates the 75th anniversary of its founding in May 2022 and the final year of its longterm management plan, VISION 2023, in October 2022, we reviewed the three pillars of Sanyo Trading as
we aim to become a 100-year company.

A specialized trading company with expertise in niche-top,high-value-added products rather than highly competitive, thin-profit,
general-purpose products.
Our products are used ina wide range of applications.

Efforts in each business (See Page 32–41)

We have established a new slogan, a source of growth compatible
with our predecessors’ lessons.

Rubber Business Unit
Chemical Business Unit

Construction

Industrial Products No. 1
Business Unit

Automotive

Renewal of Our Corporate Identity (CI)

Smartphones

Deepening Our Value
Creation Model and
Growth Strategy

Books, pamphlets, etc.

Industrial Products No. 2
Business Unit
Green Technology Business Unit
Life Science Business Unit

Roads

2

Bridges andother structures

Daily necessities,
cosmetics, etc.

Providing highly specialized total solutions rather thansimply selling the products we purchase
From surveying and planning to maintenance andafter-sales service, our personnel with technicalsales capabilities provide comprehensive services
while staying close to our customers.

Close to halfof our employees
have a backgroundin science

Design/Development

Survey/Planning

See Page 9 for more details.

Prototyping

Providing
end-to-end
solutions
Maintenance/
After-sales
service

Providing Solutions

Customers

Massproduction
Stablejust-in-time
supply3

We have deepened our value creation modeland growth strategy and articulated our vision
for the future.

Food products

Building long-term partnerships with a strong relationship of trust
based on our policy of “one product, one supplier”

Formulation of the New Long-termManagement Plan SANYO VISION 2028

See Page 18 for more details.

While succeeding in the results obtained through the previous longterm management plan, VISION 2023, we have formulated a newlong-term management plan, SANYO VISION 2028, which will end in
the fiscal year ending September 2028, based on new issues.
See Page 24–27 for more details.

“One product, one supplier”

means that, in principle, one supplier per product is handled to
avoid supplier conflicts. This principle has built a long-standing
and deep relationship of trust with our suppliers and has given
birth to our differentiation from other companies.

2

3

Sanyo Trading Integrated Report 2023

Origin of Value Creation

Learning from Our Predecessors

What are the characteristics of Sanyo Trading that have been consistently maintainedsince the Company was founded?
The development of our Company up to the present day is based on the lessons learned fromour predecessors.

Trust is what it takes to succeed
in business

Founding
When the Mitsui zaibatsu (family-run conglomerate) was ordered todissolve after the war, Sanyo Trading Co., Ltd. was established in 1947
by former employees of the Kobe branch of Mitsui & Co., Ltd. Eiichi
Tamaki, the president of the Company, had a wealth of experience inthe trading company business, and his career and strong desire
attracted many connections. The business began when he qualified
as a rubber import agent from the Public Corporation for Ironworks
Trade and started distributing rubber on behalf ofthe corporation. While maintaining the dignity of
an industrial group, the Company had no capitalties. As an entity independent of corporategroups, the Company fostered a free and open
culture that encourages its employees to fulfill
their potential and pursues its own path.

[1947]
Chemicals Business

Began agency agreementwith Rohm & Haas

1947

1949

Eiichi Tamaki,Founding President

Rubber Business

1952

The outbreak of the Korean War in 1950 generated aparticular demand for procurement, but the market
crashed the following year, in 1951. Sanyo Trading, whichmainly exported the three new products of the era(rubber, leather, and oils and fats), faced the biggest
crisis since its establishment. Tamaki, the president at thetime, responded to this situation by persistently negotiating with the central bank for a loan, which was eventually approved, thus avoiding the worst-case scenario.
This event made the founderrealize that “trust” is the lifeline of business.

[1950]

1955

1956

Selling the service, not just goods

Despite having achieved a certain degree of success amid
management crises and the hiring of engineers, which was
unthinkable when the Company was first founded, the Company declared an unwavering and enterprising approach tosolidifying its foundations and establishing a foothold for the
next stage of development.
Tamaki’s ideas of not being influenced by the times and qualityof quantity are also very much evidenced in today’s management.

[1957][1975]

1957[1952]

Selling “service” and “things” is still relevant to today’s business.

1955 to 1964: Business diversification• Became a Group company• Established the Sanyo Corporate of America (SOCA) and began overseas sales• Started sales of feed equipment, agricultural and marine products

1964

1965

1971

1973

[1971]

This policy has been successful,and we have been able to increase
our business performance despite
the headwind of the businessenvironment, leading to the ideaof quality over quantity.

Industrial Products Business

Began business with GST* for car seat leather

Began importing and selling color tone calculation equipmentfrom Applied Color Systems Inc.

Engineers employed at the time brought synthetic rubber to rubber shoeprocessors and offered their services to teach processing techniques. The
beach sandals developed due to this development were so much in thelimelight that they were temporarily in short supply.

• Established in Kobe in May 1947
• Established industry position in synthetic rubber imports/
exports• Started sales of agrochemicals

The late 1970s were headwind years for the trading company
industry. At the same time that the industry was under the bruntof harsh criticism due to the Lockheed bribery scandals and otherfactors, the oil shock triggered a decline in commercial profit
margins. The trend toward cost-cutting by manufacturers via ashift away from trading companies was spreading, creating a situation in which the industry was getting boxed in from all sides.
While many trading companies were engaged in mass purchasing and mass sales, we adopted a thoroughgoing system of ourunwavering and enterprising spirit. We always handle an excellent balance of high-value-added
and long-lived products.

Established a Development Section (currently the Life Science
Business Unit) within the Chemical Business Unit

In 1952, the Company signed a sole agency agreement in Japan with
Canadian Polysar Limited a leading supplier of synthetic rubber, ahead ofcompeting major trading companies. In signing the contract, Polysar
Rubber Corporation made hiring an engineer an essential condition, which
led Sanyo Trading to hire engineers and salespeople actively.

4

In 1957, Tamaki, the president at the time, stated in a New
Year’s greeting, “I feel that the efforts of the past ten years,
blessed by the quiet wave, have finally borne fruit. We will not
miss this opportunity to solidify our foundation and create an
unshakable foothold for the next stage of development. I
want to nurture a business that has roots even amid the constant rise and fall of business.”                     * California Pellet Mill1954

 he pursuit of quality sets us apart fromT
our peers

Gradual and steady instead of radical

Began importing and selling pellet machines from CPM*

Commitment to services

1947 to 1954: Founding

Unwavering and enterprising spirit

Green Technology Business

Began importing synthetic
rubber from Polysur

1950

Business crisis saved by “trust”

Seek quality over quantity           * Garden State Tanning

1975

1979

Deciding on the merchandise

Thinking beyond the saleIn 1971, the Nixon Shock severely damaged the world economy.
Although the trading industry was no exception and was affectedby this, the merchandise we provided, such as rubber and agricultural chemicals, are indispensable to our daily lives and social infrastructure and resulted in growth in our business performance. Aspart of our business expansion, the Company entered into theimport/export of general merchandise and other businesses. Still,
it failed to position itself in the industry, leading to significant losses.
The event made us keenly aware that “the selection of our business partners and industries is the basis of business.”

1965 to 1996: Establishment of a Group structure• Scientific Instruments Business Unit separated from the Chemical Business Unit
• Realization of scale expansion during the collapse of the bubble economy(strengthening profitability of core businesses)• Strengthening of internal management system, expanded overseas bases

5Sanyo Trading Integrated Report 2023

Origin of Value Creation

Learning from Our Predecessors
Listed on the Tokyo Stock
Exchange

At the time, the Company was involved in the rubber andchemical businesses and trading in primary commodities
such as foreign wheat and cultured shrimp. In response to thissituation, in 1997, President Machida withdrew from primary
products, stating that “primary products are only market products, so there is little certainty of profit.”[2012]The primary products-related business had high profit margins, which was a significant reform that hurt business performance. However, the Industrial Products Division, which waspart of the Chemical Business Unit at the time, achieved substantial growth with increased sales, mainly of automotive
interior components, and covered the primary product sales.
Machida’s decision to select and concentrate the business
led to a recovery in the Company’s performance, which had
been declining.

[1986]

1997

Healthy growth not dependent on theeconomic boom

From 1986 to 1991, the so-called “bubble economy” period was ushered in, and with its collapse, the Heisei recession period began. Amid the recession, many trading companies turnedto the money management technique “zaitech” in an attempt to break out of their situation.
Even in this environment, the Company chose to maintain the “unwavering” spirit that had
guided us since our founding and allowed us to grow ourbusiness soundly. While many trading companies were
saddled with bad debts due to “zaitech,” and some wentbankrupt, we took the high road as a trading company tostrengthen the profitability of our core products and nurture the seeds of new businesses. We strengthened andstreamlined our business foundation to prepare for the
next era.

1997 to 2011: Selection and concentration• Decisive restructuring of business, withdrawal from agricultural andmarine products businesses• Transition to a Business Unit structure

6[2023]

Learning from the COVID-19 pandemic—The importance of integrity and trust
The Company’s long-standing relationships of trust with its suppliers and customers were put to good use during the supply crunchin the wake of the COVID-19 pandemic.

[1997]
1996

Formulation of the new
Long-term Management Plan
SANYO VISION 2028

2012: Listed on the Second Sectionof the Tokyo Stock Exchange
2013: Listed on the First Section of
the Tokyo Stock Exchange
2022: Transitioned to a specified
stock on the Prime Market

Selection and concentration

1986

Corporate brand renewal

The trust that we have built up allows us to fulfill our responsibilities
to the best of our ability in the midst of global turmoil, such as prioritizing the supply of merchandise to us and responding flexibly
to unavoidable price increases.

[2021]
2008

2011

Life Science Business Unit established

Provided merchandise and services related to daily life
with a focus on food and medical care

2012[2008]

2021

2022

2023

Success from the “unwavering” philosophy
In 2008, the collapse of the American investment bank Lehman Brothers triggered a global economic crisis, the 2008 financial crisis. This event had a major
impact on the Japanese economy, causing a string of corporate failures andlosses for listed companies.
On the other hand, since the Company’s core business was the provision ofrubber used in machinery, livestock feed, industrial products, and other merchandise that are highly necessary to society, a certain amount of demand
existed even during the recession, and the Company overcame these difficulties without suffering significant losses.
As a result of our past studies and careful selection of merchandise based onwhat we have learned and what is needed in the world, we have not suffered
any severe damage even during the global recession, which made us realize
once again the greatness of the “unwavering” philosophy.

2012 to 2021: Onto the next stage• Listed on the First Section of the Tokyo Stock Exchange• Accelerated globalization (India, Mexico, Indonesia, Singapore)• M&A promotion• Full-scale launch of environmentally friendly business• Reinforcement of internal organizational structure2022 and onward:

From the present to the future• Moved to the Tokyo Stock Exchange Prime Market• 75th anniversary of the foundation

7

Sanyo Trading Integrated Report 2023

Origin of Value Creation

New MVV —— Corporate Philosophy

Basing Ourselves on the Learning of Our Predecessors
In formulating our new long-term management plan,
SANYO VISION 2028, we first set forth our “VISION” for2028. The newly formulated VISION incorporates the same
sentiment as our predecessor’s motto: “Don’t do anythingthat lowers our reputation.” With our predecessor’s philosophy in our DNA, passed down from our founding to thepresent, we have grown as a unique, sophisticated, andone-step-ahead trading company that stands out from therest of the world, based on the accumulation of “goodwork.” We will continue to strive to realize our VISION as we
accumulate more “good work” than ever before, and wewill continue to look one step ahead in our quest for theBEST solutions for our customers and a better future forthe earth.

We have placed various thoughts and feelings into the new logo to make ita banner for the realization of our VISION.

Challenging ourselves for the BEST solution
MISSION［ What ］

VISION［ Where ］

We foster an open, down-to-earth,and entrepreneurial corporate culture thatdrives our collective efforts to deliver
the best solutions ﬂexibly and timely
so that we can help achieve the sustainable
development of the global community andfulﬁll employees’ aspirations for well-being

In pursuit of the best solutions for a better future
The logo’s dynamic and lively form denotes our foresight and entrepreneurship,
as well as our resolve to pursue innovation.
Its sky blue color signifies a bright future with the green dot in

Deliver tangible solutions to social issues
to make the world a better place for everyone

the letter “i” representing a human face and the global environment.
This corporate logo symbolizes Sanyo Trading’s commitment to bringing a better future

VALUES［ How ］

Act with
integrity

Be achallenger

DemonstrateagilityPursueinnovation

We observe laws,
regulations, andprofessional ethics ineverything we do.

We build a future fullof opportunities andcreativity.

We make the rightdecisions at the righttime and act on themeffectively.

We stay abreast ofsocial and economicchanges and seize
opportunities for
growth and success.

to the earth and all of you, true to our Vision of“delivering tangible solutions to social issues to make the world a better place for everyone.”

Contents
Origin of Value Creation

Management Foundation

2
About Sanyo Trading3	The New Sanyo Trading—Aiming to be a 100Year Company
4
Learning from Our Predecessors
8
New MVV/Table of Contents and Editorial Policy
10
Sanyo Trading’s Strengths in Numbers
12
Message from the CEO42	Basic Sustainability Policy and Material Issues
44	Reducing Environmental Impact
50	Providing a Fulfilling Lifestyle52	Active Participation of Diverse Motivated
Human Resources
56	Reinforcing Solid Management Structure(Corporate Governance)
62	Roundtable of Outside Directors
66	Corporate Officers
68
Eleven-year Financial Summary
70
Stock Information/Corporate Data

Sanyo Trading’s Strategy
18
Value Creation Model
20
Focus Areas and Growth Strategies
24	New Long-Term Management Plan
SANYO VISION 2028
28
Business Overview

8

Editorial Policy

We publish the Integrated Report as an essential tool to help a wide
range of stakeholders understand the Sanyo Trading Group’s business activities and distinctive approaches to value creation. In the“Learning From Our Predecessors” section of this report, we lookback at our history and the strengths we have developed from ourhistory, and explain our strategies by business unit and our efforts
toward sustainability, along with the long-term management plan
SANYO VISION 2028 newly formulated in November 2023, to tell
the story of value creation over the medium to long term. The
Sanyo Trading Group will continue to use the Corporate Report asa tool for dialogue with all stakeholders, including shareholders andinvestors, to enhance disclosure and improve corporate value.

Reporting Scope

Sanyo Trading Co., Ltd. (“the Company”) and Sanyo Trading Group
companies (“the Sanyo Trading Group”)

Period Covered

October 1, 2022, to September 30, 2023
(Please note that this report includes information regarding theresults of activities outside the reporting period.)

Regarding Forward-Looking Statements

Forward-looking statements in this report are based on forecasts
made by the Company in light of information available at the timeof writing and involve several risks and uncertainties. Actual businessresults may differ substantially from the forward-looking statements
and forecasts in this report. In no event shall the Sanyo TradingGroup be liable for any loss or damage arising from using the information in this Corporate Report. The Sanyo Trading Group is under
no obligation to update or publicly announce any projections or
forward-looking statements contained in this Corporate Report.

9

Sanyo Trading Integrated Report 2023

Origin of Value Creation

Sanyo Trading’s Strengths in Numbers

Sanyo Trading’s Strengths

 pecialization in niche, high-value-added merchandise, rather than thinly marketed,S
general-purpose products
Provision of total solutions by leveraging a high level of expertise and technical capabilities
Building long-term partnerships based on the idea of “one product, one supplier”

1 Strong Growth
Each of our businesses, particularly our
automotive-related businesses, has grown
in response to the demands of the times. In
the 2010s, the Company expanded its
presence in India, Mexico, Indonesia, andSingapore, further increasing its presencein overseas markets. In addition, from theperspective of establishing an optimalorganizational structure, we are promoting
M&A in our four focus markets (see Page20) and have achieved sustained earnings
growth since listing through a strategic
approach from both a global and Groupsynergy perspective.

3 Well-balanced Revenue BaseNet sales and operating profit since listing (October 2012)(Millions of yen)

(Millions of yen)

Sales up 2.4 times and operating
profit up 2.8 times since listing

160,000

12,000122,596

120,000

9,000

6,740
6,000

80,00051,07540,0002,440

0 2013.9

3,0002014.9Net sales (Left axis)

2015.92016.92017.92018.92019.92020.92021.92022.92023.90Operating profit (Right axis)

We are currently developing three segments. The Chemicals Segment has been
performing stably in the raw materials business, which supports our overall performance. The Machinery & Industrial Products
Segment is the segment driving the Company’s growth, primarily in the industrial
products business. In addition, the overseas
subsidiary business has continued to growdue to the acceleration of global expansion
since the Company was listed on the stock
exchange. We aim to achieve further growthby strengthening and diversifying our earnings base in each segment.

Changes in operating profit and current net income attributable toowners of the parent by segment since listing

Current net income attributable to owners of parent
up 3.3 times since listing(Millions of yen)

(Millions of yen)

6,740

8,000

4,830

5,000

4,000

6,000

3,000
4,000
2,440

2,000

1,475

2,000

0

1,000

0

2013.9 2014.9 2015.9 2016.9 2017.9 2018.9 2019.9 2020.9 2021.9 2022.9 2023.9

2013.9 2014.9 2015.9 2016.9 2017.9 2018.9 2019.9 2020.9 2021.9 2022.9 2023.9–2,000Chemicals
Machinery & Industrial Products
Overseas Subsidiaries
Other and adjustments

2 High Profitability
Specializing in high-value-added merchandise in niche industries, we have continued toprovide solutions to our customers by leveraging our advanced expertise and technicalcapabilities. Specialization in high-value-added
merchandise that are not general-purpose
products with thin margins leads to low leverage and high profit margins, and providing
solutions that leverage advanced expertiseand technical capabilities contributes toestablishing a business model with high total
asset turnover. As a result, our ROE has been
above the TSE average and the ROE target(8%) since listing.

10Current net income attributable to ownersof parent

4 Solid Financial Foundation
ROE since listing (comparison of Sanyo Trading and the TSE average)

Since listing, ROE has remained above
the 8% target and the TSE average.

(%)
20

15

11.8

11.0
10

5

10.0
5.6

0 2013.9

ROE target(8%)
2014.9Sanyo Trading ROE

2015.92016.92017.92018.92019.92020.9TSE Average ROE (Non-manufacturing)2021.92022.92023.9We have built a solid financial foundation
based on our past earnings growth, capitalefficiency, and sustained growth. This stablefinancial foundation has enabled us to build
a just-in-time and stable supply system formerchandise and to secure inventory, which
has contributed to improving our service
quality. In addition, the Company can now
make appropriate and flexible investments
in M&A, new product development, overseas base maintenance, and human capital
investment, thereby improving our responsiveness as a company.

Changes in equity, interest-bearing debt, and the shareholders’equity ratio since listing(Millions of yen)
50,000Shareholders’ equity ratio over 50%
Maintaining a solid financial foundation(%)

43,442100
80

40,000
59.2%

63.4%

20,000 14,899

40

30,000

60

5,715

20

10,000830

0 2013.9

2014.9Net capital*

1

2015.92016.92017.92018.9Interest-bearing debt* (Left axis)
2

2019.92020.92021.92022.92023.90

Shareholders’ equity ratio* (Right axis)*1 Net assets—Stock acquisition rights—Noncontrolling interest.
*2 Short-term debt + Long-term debt
*3 Net capital / Total assets at the end of the period

311Sanyo Trading Integrated Report 2023

Origin of Value Creation

Message from the CEO
Our thoughts on the company logo

Becoming a unique andaccomplished trading company
at the forefront of the industry
by anticipating changes in society

In response to our environment, the logo’s dynamic and lively form denotes
our foresight and entrepreneurship, as well as our resolve to pursue innovation.
Its sky blue color signifies a bright future with the green dot in
the letter “i” representing a human face and the global environment.
This corporate logo symbolizes Sanyo Trading’s commitment to bringing a better future
to the earth and all of you, true to our Vision of “delivering tangible solutions tosocial issues to make the world a better place for everyone.”and challenging ourselves for
the BEST solutions following
our open, down-to-earth, andentrepreneurial corporate culture

Masanobu Shintani
President & CEO

investments that make the most of this ratio. In our new long-

We believe that the reason for our Company to exist, or

term management plan, SANYO VISION 2028, we will learn

our Mission, is to create value through contributions to soci-from our previous challenges, implement more appropriate

ety, not just to the Company. When individual social contri-

strategies and measures, and aim for further growth while

butions come together, they can have a greater impact andresponding flexibly and quickly to changing circumstances.

bring about meaningful change to society as a whole. The

New Mission, Vision, and Values
Established as Our New Cause

12

resulting benefits can be plowed back into new social contributions. We believe that the meaning of our existence is
to contribute to society in a way that cannot be achieved by

The year 2023 marked ten years since the Company was

one person alone, that is, to accumulate “good work” on alisted on the First Section of the Tokyo Stock Exchange andsustained basis. The Vision, “Deliver tangible solutions to

was the year we moved on to a new stage of growth. Look-social issues to make the world a better place for everyone,”ing back over the past ten years, we have been fortunate to

was established to capture this concept of social contribu-

grow net sales and profit by approximately 2.5 times. We

tion. By combining the original management philosophies

have also expanded our business domain by developingin our Mission and our Values of “act with integrity,” “be anew business units and new businesses. Our steady growth

challenger,” “demonstrate agility,” and “pursue innovation,”over the past ten years can be attributed to our first presi-

we have conveyed our original philosophy in an easy-to-

Net Sales and Profits Both Hit Record Highsin the fiscal year ended September 2023

strong relationships of trust with our business partners anddent, Eiichi Tamaki, saying, “Don’t do anything that lowers

understand manner and expressed the guidelines we will

our customers were major factors in our record-high sales

our reputation,” and his consistent approach and strategy

pursue in the future.

In the fiscal year ended September 2023, net sales andand profits. In addition, M&A activities, which we have beenof “being a solution provider, not a trading company.”

profits increased by double-digit percentages over the pre-stepping up in recent years, have steadily contributed to

However, with the market environment and other factors

vious year, reaching a new record high. This was because

profits. Overall, the fiscal year ended September 2023 wassurrounding the Company changing more rapidly than

the supply shortage of semiconductors was resolved ear-a year in which we achieved growth.

ever, it has become difficult to be certain that we will beable to continue to grow using the same methods for the

SANYO VISION 2028, a New Long-termManagement Plan to Accelerate Growthfrom Both Qualitative and Quantitative
Perspectives

lier than expected, and the production volume of Japa-

On the other hand, our targets of a consolidated ordinary

nese automakers, with whom our business is closely related,

income of ¥7.5 billion and an ROE of 15% outlined in theremained strong. The impact of foreign exchange rates,

long-term management plan VISION 2023, which ended in

Therefore, we have renewed the company logo andour new long-term management plan SANYO VISION

especially the weak yen, did not significantly impact our

the fiscal year ended September 2023, were not achieved.

revised our Mission, Vision, and Values to take on new chal-2028 as a guideline for continued growth. In formulating

business performance. This is because we have built good

Various factors, including the spread of the COVID-19 pan-lenges with intention along these lines while leveraging

the plan, we were conscious of the need to respond to

relationships with our customers, enabling us to negotiate

demic, have made it difficult to achieve this goal. We takeour past successes and consistent philosophy (see Page 8).

radical environmental changes and balance quantitative

prices in response to market fluctuations, and due to ourthese results seriously and will apply them to future corpo-

The major difference is that we have now clearly stated ourand qualitative aspects.

ability to secure profits at our overseas bases. Overall, we

rate growth. In particular, we have built a solid financial foun-

Vision, which is based on the management philosophy andFirst, regarding our response to radical environmental

believe that favorable business conditions, our systems that

dation with a shareholders’ equity ratio of more than 60%.

approach that we have followed from our founding to thechanges, I feel that we are currently at a once-in-a-century

respond to changes in the external environment, andWe will achieve our next numerical targets through growthpresent day, in a language that is easier to understand.

turning point in many respects, as society has been touting

next ten years.

In the fiscal year ended September 2023, we formulated

13

Sanyo Trading Integrated Report 2023

Origin of Value Creation

Message from the CEO

as of late. In a way, there is a sense that a great revolution issociety. Thinking in terms of providing services throughsociety, permeate the entire organization as a shared Vision

taking place, like the Industrial Revolution, which kept pro-people, we have two philosophies: “We do not chase tem-that every employee is expected to undertake proactively

ducing advancements while no one knew the right answer.

porary gains but continue to do business that leads to theand with conviction.

The automotive industry is also undergoing a transformationnext step, thereby meeting the needs of our customers”

regarding fuels, with a marked change in demand. Politicaland “We make proposals and show optimal solutions toand environmental backgrounds greatly influence the sup-issues that our customers are unaware of.” Through theseply-demand balance for fuels. In recent years, new factors

two philosophies, we are committed to the daily provisionsuch as the birth of new fuel demand for the shift to EVs andof services as a solution provider. To operate as a Company

forth four measures: “Growth of existing businesses,” “Devel-

the increasing demand for hydrogen fuel as an environmen-

and grow over the long term, we need the qualitative ele-

oping new businesses, “Strengthening consolidated man-tally friendly fuel are also compounding the situation, making

ments of being a solution provider and the quantitative

agement structure,” and “Advancing investment projects.”

the future outlook strenuous. In formulating SANYO VISION

elements of budgeting and financing. Therefore, in the

Since our business is mainly B to B, we believe it is impor-

2028, we interviewed each business unit for detailed busi-

new long-term management plan SANYO VISION 2028,

tant to thoroughly understand the needs of our customers

ness forecasts for the next five years to create a management

we have set forth the focal points of “Strengthening thefor their current and future business development up to

offices, we can see that we must further strengthen ourplan that can constantly reconcile the status of our businessearnings base” in the quantitative aspect and “Corporate

three or five years in the future and to continue to provide

communication with the overseas bases. Governance mustwith the world’s changing circumstances. By making firmmanagement” in the qualitative aspect. While these plans

added value to meet those demands. The most important

be improved to achieve strengthened communications.

progress in this reconciliation, we hope to respond tofollow the basic ideas of the previous long-term manage-

factor in accurately understanding needs is the relationshipSpecifically, we intend to prioritize efforts to increase thechanges in business conditions and achieve corporate

ment plan VISION 2023, the content of SANYO VISION

with the customer. By utilizing a hybrid market orientation

number of contacts, including frequent reciprocal visits

growth through contributions to society.

2028 was finalized after nearly a year of internal discussions

and our traditional strength of product orientation, we will

and ongoing remote meetings. We will further strengthen

Regarding the compatibility of quantitative and qualita-

from the plan’s framework to the formulation of specificfocus on the “growth of existing businesses” that form thecooperation with overseas bases and Group companies.

tive aspects, as mentioned earlier, we believe that the Com-measures, with feedback sought from all employees in thefoundation of our relationships with our customers.

Especially in acquired Group companies, it is important topany’s reason for existing is to contribute to society. In

final stage. As a result, SANYO VISION 2028 has become aConcerning the second item, “Developing new busi-

understand their corporate culture and characteristics. Thisparticular, for our Company, since we do not sell our prod-

management plan in which the quantitative aspect, which

nesses,” we will focus on two main initiatives. The first is towill strengthen the Group’s unity as “One Sanyo” and pro-ucts, it is important how each person who provides services,

is our responsibility as a corporate entity, and the qualitative

promote a group of projects defined as potential core

mote organizational collaboration.

in other words, our employees as “people,” contributes to

aspect, which is our reason to exist in contributing tobusinesses that the Company as a whole should focus on

Finally, there is “Advancing investment projects.” Wein the future in light of megatrends and future market

have positioned 2024 as a year of new beginnings and will

growth potential (see Page 20). From the 28 potential core

face the challenge of achieving further growth. For thisbusinesses currently listed, we intend to select ten of thereason, we will adopt a policy of aggressively pursuing nec-

most promising businesses as diamond core businesses

essary upfront investments when looking five or ten years

and proceed with them while providing intensive support

into the future. In line with this policy, we will specificallyfrom management. Another is the use of the Businessstrengthen “Advancing investment projects,” including pro-Development Department, which was established threemoting potential core businesses, investment in humanyears ago. The Business Development Department was

resources, investment in startup companies, and DX invest-

established to address complex issues that cut across busi-

ment. DX is a relevant megatrend in particular, with Cosmo

ness units and new businesses with a market orientation.

Computing System, Inc. acquired in 2022, as a cornerstone,

So far, the Business Development Department has com-we will adopt a policy of aggressive investment in both

mercialized new businesses such as the automotive bench-

offensive IT utilization, such as utilization as part of services

marking business and high-quality recycled plastics

and inventory management, including e-commerce sites,

utilizing ocean-bound plastic (OBP) (see Page 22–23).

and defensive IT utilization, such as digitalization of internal

During SANYO VISION 2028, we will further focus on these

operations.

Evolving for SANYO VISION 2028

VISION 2023

SANYO VISION 2028

Strengthening the earnings baseStrengthening the earnings baseD

Enhancing business in certain fields

1

Growth of existing businesses

E

Developing new businesses

2

Developing new businesses

F

Accelerating globalization

G

Advancing new investment projects

3
4

Advancing investment projects
Corporate Management

Strengthening the corporate structure

To “strengthen the earnings base”, SANYO VISION 2028 set

initiatives to develop new businesses.

A

Corporate culture

B

Challenging ourselves for the BEST
solution
Strengthening the Company’s
foundation

B

Human capital

structure.” Our overseas bases are not independent as bases

C

Investing in human resourcesC

Sustainability

commercial products of each Business Unit across the board.

point in SANYO VISION 2028, we have established four

Although progress has been made in making overseas

measures to strengthen our function as a social contribution

bases more visible when compared to our domestic

group: Corporate culture, Human capital, Sustainability, and

A

D
14

Strengthening consolidated
management structure

Responsibilities as a Corporate Entity,“Strengthening the Earnings Base”

Use of IT

The third is “Strengthening consolidated management
but work closely with our domestic offices to handle the“Corporate Management” to Strengthen
Social Contribution

Concerning “Corporate management,” an additional focal

15

Sanyo Trading Integrated Report 2023

Origin of Value Creation

Message from the CEO

Use of IT. We are forecasting ¥6.0 billion in operating profit

fundamental improvements to our training system. We arehierarchy-based training program and the purpose of train-

extra efforts in this preparation and discernment, as stated

for the fiscal year ending September 2024 compared toalso working on quantitative improvements, such asing, self-realization, and to promote the new training system

in SANYO VISION 2028 as the “Developing new busi-¥6.7 billion in operating profit for the fiscal year ended Sep-

strengthening our recruitment strategy. The launch of theto be meaningful. Regarding individual employees, we

nesses” and “Advancing investment projects” (see Page

tember 2023, an outcome of our plans to invest aggres-

Sanyo Academy as part of our human capital strengthen-plan to incorporate executive training as part of the Sanyo

22). We will continue to respond to radical changes in thesively in “Corporate management.”

ing measures is incredibly significant in improving the qual-

Academy starting the fiscal year ending September 2024.

world by comprehensively leveraging our flexibility as a

As I have mentioned, we intend to focus more on thebusiness model, lessons we have developed from our pre-As for the corporate culture that forms the basis of our

ity of our employees (see Page 52).

corporate activities, the establishment of the new Mission,

Strengthening human capital requires a multifaceted

qualitative aspect of increasing our contribution to society,decessors and founding, and our strengths. In addition, as

Vision, and Values, as mentioned above, holds a significant

view of various factors, including training, systems, andor in other words, on non-financial areas, by working onstated as a measure of SANYO VISION 2028, we will aim

meaning, but we will also further refine the open and inclu-

how personnel are assigned and evaluated. The Sanyo

improving the corporate structure through the establish-

for sustainable growth even in a world where it is difficult tosive spirit that we value as part of our corporate culture. I

Academy was formulated after considering these factors.

ment of a new Mission, Vision, and Values, strengthening

foresee the future by aggressively and promptly investing

believe that the employees who do the business are theFor example, we focused on clarifying training objec-

our human capital, and other measures in SANYO VISIONin businesses that we deem worthy of investment in light ofmain actors in a company. As a part of the management, I

tives and established a system to provide appropriate train-

2028. We also perceive our response to sustainability as a

future market expansion potential and megatrends.

will form an open and inclusive culture by providing a stage

ing unique to our Company for each level of employee.

megatrend. We intend to contribute to a sustainable soci-where employees can feel satisfaction and growth and aSpecifically, we have defined the stages of employees andety by prioritizing sustainability in SANYO VISION 2028. As

place where they can be entrusted with various tasks without

provide training for each level. New employees are in theone of our specific initiatives, we have established sustain-

being restricted by age or other factors. In this open andthorough knowledge absorption stage. After employees

ability as one of our four focus markets, where high market

must use them effectively. Effective utilization means fulfill-inclusive culture, we believe that the kind of people we seek

gain a certain level of experience, they are in the self-

growth is expected in which we are focused on (see Page

ing our vision of “making the world a better place for every-

are self-motivated individuals who are always ready to takeestablishment stage. Employees that move on to the man-20). We are actively handling and expanding sales of prod-

one,” in other words, contributing to society, which is ouron challenges and openly provide optimal solutions in a sin-agement level are in the management or deepened

ucts with low environmental impact, renewable energy,

responsibility as a company. By fulfilling this responsibility,

cere manner. In other words, people act voluntarily, not for

specialization stages. Finally, those who lead operations are

and other similar measures. At the same time, we will also

we will work to effectively use the funds provided to us andthemselves but for others, society, and the people aroundin the executive management stage. The thorough knowl-

promote management visualization by proactively disclos-

ultimately return even more to our shareholders. In addition,

them. By further deepening this culture, we hope to channeledge absorption and self-establishment stages establish

ing non-financial information, including information disclo-

the fiscal year ended September 2023, the final year of ourthis culture into a unique strength of our Company that is

the ideal employee and allow for self-realization by provid-

sure based on TCFD recommendations and the publication

previous long-term management plan, VISION 2023, wasdifficult to imitate. To this end, we have made cultivating thising employees with training at subsequent levels and otherof this Integrated Report.

incredibly meaningful for us. At this turning point, net sales

culture one of the measures in this management plan.

supplementary training, such as overseas language train-

Future Business Conditions andBusiness Risks

To Our Shareholders and Investors

Since our shareholders have provided us with funds, weand profits reached record highs, with net sales and ordinary

As well as the self-motivated human resources required

ing. This system has allowed us to clarify the training objec-

for this free and open approach, we believe that strength-

tives, which had been an issue. The challenge moving

ening our human capital, where the services of each sales-

forward will be to operationalize this system. To achieve

In light of the shift, as mentioned above, to EVs, hydrogenpany. To look at it another way, our Company can steadily

person are value-added, is essential for our company.

operationalization, we feel it is necessary for each employee

fuel, and other recent technological innovations and rapid

grow and produce results. We will continue to inherit ourUnder SANYO VISION 2028, we will focus our efforts on

to understand the background behind the change to achanges related to climate change, the future outlook isstrengths as a company, make further improvements where

uncertain, and the world is changing so rapidly that it isneeded, such as strengthening our human capital, andonly in retrospect that we realize that the world is continu-

steadily achieve the newly announced SANYO VISION 2028

ing to change. This rapid change can be seen as a risk, but

to enhance our corporate value further.

Human Capital under SANYO VISION 2028

Acquiring human resources

Human resource development

Hire sufficient number of employees
Expand hiring methods

First year of Sanyo Academy
Active promotion of Sanyo Academy

income growing by approximately 2.5 times over the pastten years. This is the result of our steady growth as a com-on the other hand, we see it as an opportunity to create
new business opportunities for trading companies that do
not have non-current assets, such as products or factories.
In the automotive industry, which is our main business

Masanobu Shintani
President & CEO

domain, the shift to EVs could be a business risk for prodBuild an organization with high engagement
Development of future managementhuman resources

Professionalism from all employees—respect for each other’s work
Flexible organization

Increase in self-motivatedhuman resources

ucts for gasoline and diesel vehicles. Still, from the perspective of “handling automotive products,” it is a business
opportunity where new needs may be created, such as
products for EVs. Rather than taking risks from radical
changes in the world, we will feed our sustainable growth

Realize sustainable development

by demonstrating flexibility and responsiveness.
This flexibility required a good eye for preparation andreadiness in advance. In this sense, we have been making

16

17

Sanyo Trading Integrated Report 2023

Sanyo Trading’s Strategy

Value Creation Model

Sanyo Trading creates social and economic value by providing total solutions that leverage capital to its
four focus markets. By maximizing outcomes by implementing our business model, we will realize our
VISION to “Deliver tangible solutions to social issues to make the world a better place for everyone.”

External Environment (Megatrends)
1. Climate change

2. Technological innovation

Input

3. Low birthrate and aging population

Business Model

Human Capital

Construction

Design/Development• Employee training(Sanyo Academy)• Science and technical personnel(about half of sales employees
have a science background)Social and
Relational Capital

Fine Chemicals

Decarbonization

Bridges and otherstructures

Resource and Energy
Conservation

Aging Population

Comfort and QOL*6

Local Production for
Local Consumption

Technology-driven,
Maritime Nation

Revitalization ofRegional Economy

Prototyping
Chemical Business Unit

• Strong relationship of trust withour business partners(one product, one supplier)

Safety and Security

Four Focus
Markets

Rubber Business Unit

Survey/Planning

OutcomeCreation of Social andEnvironmental Value

Six Business Units
687• Employees(Sanyo is a people company)

OutputProviding Total Solutions* As of the end of September 2023

• Number ofconsolidated employees:

4. Globalization

Automotive
Mobility

Providing
end-to-end
solutions• National andinternational networks
Japan:
4 bases
Overseas:
16 locations in

10 countries

Industrial Products No. 1
Business Unit
Industrial Products No. 2
Business Unit

Customers

Books,
pamphlets, etc.
Sustainability

Financial Capital•	Shareholders’ equity*1:
43,442 million yen•	Shareholders’ equity ratio*2:

63.4%

Maintenance/
After-sales service

Mass production

Green Technology
Business Unit•	Interest-bearing debt*3:
5,715 million yen•	D/E ratio*4: Stable just-in-time
supplyIntellectual Capital• Expertise and know-how passed
down from generation to
generation• In-house system development(Cosmo Computing System, Inc.*5)

Resolving social issues
through business

Reduction of environmental impact
Reinforcing solid management structure

6,740 million yen (5.5%)
4,830 million yen

Daily necessities,
cosmetics, etc.

• Free cash flow:

3,003 million yen• ROE:
Providing a fulfilling lifestyle
Active participation of diverse motivated human resourcesLong-term Management Plan SANYO VISION 2028

Deliver tangible solutions to social issues to make the world a better place for everyone*1 Net assets – Stock acquisition rights – Noncontrolling interest *2 Net capital / Total assets at the end of the period*3 Short-term debt + Long-term debt *4 Interest-bearing debt (excluding lease obligations) / Shareholders’ equity• Operating profit(operating profit ratio):• Current net income attributable toowners of the parent:

Life Science
Business Unit

Materiality
Strengthening the business basethat supports sustainable growth

18

Actual results for the fiscal year
ended September 2023

Life Science

Smartphones

0.13x

Creation of
Economic ValueRoads

Food products• ROIC*7:

11.8%
9.5%

• Total dividends (payout ratio):

1,237 million yen (25.6%)*5 Became a Group company in October 2022 *6 Quality of Life
*7 Operating profit after tax / Invested capital at the end of the period(= interest-bearing debt + Shareholders’ equity)

19

Sanyo Trading Integrated Report 2023

Sanyo Trading’s Strategy

Focus Areas and Growth Strategies

Four Focus Markets
The markets in which we can leverage our strengths andwhere future market expansion is expected are our “FourFocus Markets,” where niche, high-value-added products canbe expected. Considering future growth potential, we willemphasize these market areas among the top niche highvalue-added commercial products in our business domain.

MarketFieldsObjective

Division

Fine Chemicals

Synthetic rubber, paints, ink,
coatings, electrical materials

We will contribute to the development of the materials fieldby providing a stable supply of functional materials, rawmaterials, new naturally derived materials, and other finechemicals that complement technology and feature environmental performance.

Rubber Business Unit
Chemical Business Unit

Mobility

All types of mobility

We will be an early provider of value-added transportation
products and services designed for the industrial structure in
2030 and beyond.

Industrial Products No. 1
Business Unit
Industrial Products No. 2
Business Unit

Sustainability

Renewable energy (biomass, geothermal, marine)
Livestock feed

We will contribute to a sustainable society by providing
woody biomass and geothermal and marine resources in the
renewable energy field and delivering safe and higher quality
feed in the livestock field.

Green Technology
Business Unit

Life Science

Food additives, cosmetics,
home health care, scientificinstruments, biotechnology,etc.

We will provide various products and services, particularly onfood and medical care, to help improve quality of life in newlifestyles and the super-aged society.

Life Science Business Unit

New Business
Development Department

An organization under the direct control of the Company president that transcends
Business Unit boundaries and prioritizes the development of promising businesses
that are large in scale(Creating next-generation
businesses across divisions)

Our Business Portfolio Based on Our Four Focus Markets
Based on market growth rates and relative market share, wehave included the businesses in which we operate in thefollowing business portfolios. By investing the resources
gained from the core businesses and those invested inbusinesses under consideration to discover and nurturebusinesses that could become future earnings pillars in thefour focus markets, we are developing them into new
growth businesses and core businesses.

Business Portfolio
High

Market growth rate

Current grossincomeRenewable energy

Discover new projects,
cultivate future fundamental businesses
Supporting company-wide

Examples: Benchmarking, naturally derived materials,
environmentally-friendly products●●●●
Raw materials forlivestock feed, etc.

Chemicals
Biotechnology

InvestStrategic resource
allocation

Future grossincome potential

RubberMaterial solutions
Industrial products
Livestock feed equipment

Select(Turnaround, streamline/improve efficiency, or withdraw)

Scientific instruments

Businesses requiring
further study
Low

●●●●

Growth businesses

Businesses being cultivated= Potential core businessBusiness growth cycle
Core businesses

Relative market share*High

Messages from Directors in Charge of Each Business Unit

Kenichi Shindo

Mitsuyasu Hirasawa

Director
In charge of Business Divisions

Director
In charge of Business Divisions

Fine Chemicals
Life Science
Fine Chemicals

We have been involved in the fine chemical market since ourfounding in 1947, and it can be said to be one of our mainstream
businesses. Two Business Units, the Rubber Business Unit and theChemical Business Unit, have developed businesses in theirrespective markets. As we have expanded our business into various markets, we have always maintained a high level of expertisein the fine chemical market, regardless of changing times andmarkets, and have earned a reputation for introducing excellent
overseas products to the domestic market. As in other markets,
China’s presence is increasing in the fine chemical market, while
the rise of ASEAN countries and India is also remarkable. As an
extension of this global market trend, major Japanese companies
are beginning to build global strategies centered on the Asian
region, believing that the center of fine chemical manufacturing
will shift from Europe and the United States to Asia. We havealready established bases in key areas in Asia, staffed them withhighly specialized personnel, and are preparing to expand theactivities of our fine chemical business overseas. In addition, to
responding to the recent global trend toward sustainability, we
will strengthen our handling of environmentally-friendly products,
such as new materials of natural origin.

Life Science

Sanyo Trading provides various products and services related topeople’s daily lives through our life science business to improve
people’s quality of life (QOL). We mainly deal in food additives, cosmetics, home health care, and scientific instruments, enhancing thequality of people’s lives in various fields.
We have highly specialized staff in each field to provide services that offer the best solutions, meaning we are more than justsimple vendors. In recent years, the life science field has been
incorporating AI, leading to dizzying changes in the market. As weadvance, we will continue meeting the market’s expectations byleveraging our expertise and global network to grasp new market
trends and provide accurate solutions quickly. In addition, theCompany is focusing on the biotechnology business as one of our
future core businesses. To expand this business, we have added
SCRUM Inc. in 2022 and KOTAI Biotechnologies, Inc. in 2023 to
our roster of Group companies. Through the activities of these twocompanies, we will work to support medical researchers and drug
discovery, contributing to the development of biotechnology inthe coming super-aged society.

Mobility
Sustainability
MobilityIn the mobility market, in which the Industrial Products Business
Units No. 1 and No. 2 are deeply involved, technological innovations such as EVs, automated driving, and MaaS are rapidly
advancing, as it is said that this is a “once-in-a-century period ofchange.” To respond to this radical market trend, we will firststrengthen our relationship with our existing suppliers, especiallyfor interior components, which are the foundation of our business, and contribute to the development of our customers,
including Japanese automakers. In addition, in proposing existing suppliers’ commercial products, it is necessary to offer something extra due to intensified competition with other companies.
To survive and move forward in this competition, the Business
Units will make every effort to allocate resources to secure new
supplier products that respond to megatrends.
In addition, while market trends are changing rapidly, we
intend to maintain our sales approach of “staying close to theissues and problems of the world and the problems of our customers, using our unique network to search for and provide thebest solutions.” To continue providing solutions to our customers’
short- and long-term problems and social issues they are awareof, we will strengthen cooperation between the New Business
Development Department’s people in charge of mobility field
and the Business Units and increase our efforts in interviewing ourcustomers, among other efforts.
Sustainability

In the sustainability market, we focus primarily on businesses
related to renewable energy (biomass, geothermal, and marine)
and livestock feed. In the renewable energy-related business, weare focusing on expanding sales of a special film that achieves a
cooling effect using sunlight, which is being developed by SolCold in Israel. This special film is currently attracting attention as asignificant contributor to global warming countermeasures andreduction of electricity consumption, with future tasks set on
mass-producing this film. For this reason, we are working on
selecting partners and addressing issues in terms of equipment
as our first move toward mass production.
In the livestock feed-related business, we have already completed the commercialization of equipment for promoting thepelletization of compost and biomass power generation using
lumber chips. As such, we are focusing on expanding sales, as in
the case of the special film described above. In particular, the pelletizing of compost and biomass power generation derived fromlumber chips requires steady network building and customer
understanding due to the nature of the business. We will respondto these needs by leveraging our strong sales capabilities.
As in the Industrial Products Business Units No. 1 and No. 2,
we will strengthen cooperation between the people in charge ofsustainability field in the New Business Development Department
and the Business Unit, as well as brush up the respective fields ofexpertise of Group companies related to the sustainability market,
such as Cosmos Shoji Co., Ltd. and YPTECH Co., Ltd.

*Relative market share is the share held by the Company compared to the share held by leading company in the same market

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Sanyo Trading Integrated Report 2023

Sanyo Trading’s Strategy

Focus Areas and Growth Strategies

To cope with changes in the environment and trends surrounding the business, we are promoting the
aforementioned business portfolio strategy. Below are examples of initiatives focused on continuing theCompany’s further growth.

01 Responding to the Rapid EV ShiftFine Chemicals

Mobility

Sales Expansion of EPDM
Ethylene propylene diene terpolymer (EPDM) is a commercial
rubber product with excellent weather resistance. It is widelyused in automotive exterior parts such as weather strips, transmission belts, and mechanical parts such as water system hoses
and muffler hangers. With this in mind, while demand for thisproduct has always been stable, it can also be used in EVs as arubber around batteries and as anti-vibration rubber. We are
striving to market this product aggressively since continued
demand is expected.

EPDM seal for EV batteries
Source: Caresoft database Iceberg

02 Strengthening of Biotechnology-related Businesses

Life Science

KOTAI as a Group Company and SCRUM’s Business Progress
In recent years, biotechnology-related fields are expected to lead tofull-scale industrialization and substantial new markets. Sanyo Trading
entered this field in earnest in February 2022 after taking SCRUM Inc.
(“SCRUM”) in as a Group company and promoting it as a business tobe nurtured. In July 2023, KOTAI Biotechnologies, Inc. (“KOTAI”)
became a Group company to establish a firm position in this field anddevelop it into a growing business. KOTAI has a proven track record in
Scrum biotechnology research support equipment
cutting-edge research and bio-drug discovery support projects withand reagentsnational research institutes, universities, and pharmaceutical companies based on its unique interdisciplinary solutions that combine state-of-the-art research equipment with expertise inimmunology, AI, and molecular structure. We are also developing cutting-edge services related to genetic analysis,
including single-cell analysis and spatial gene expression analysis. In addition to the sales of SCRUM’s bioresearchsupport equipment and reagents, we aim to grow our biotechnology-related business by offering a wide range of
proposals, from contract genetic analysis services to drug discovery research support through KOTAI.

03 Development of Commercial Products for a Sustainable Society
Fine Chemicals

SustainabilityLife Science

Sales Expansion of Spherical Alumina#tide ocean material®

Spherical alumina is a commercial material with higher filling anddispersibility than any other inorganic filler with high thermal conductivity. Demand is increasing mainly for use as heat-dissipating
materials around EV batteries and in high-speed communications
and is expected to continue growing.
In the future, we will promote further sales expansion to existingcustomers and horizontal expansion to new customers.

It is estimated that 80% of ocean plastic litter is derived from ocean-boundplastic (OBP*), which is recognized as an environmental concern. We haveconcluded a license agreement with Tide Ocean SA (Switzerland), theworld’s first company to upcycle 100% of OBP and offer high-quality recycled plastic “#tide” products. In Japan, this material has been used as a raw
material for apparel, secondary materials (hangers), and stationery and is
now being considered for use in cosmetics containers. This commercial
material is expected to be developed for a wide range of applications.

* Plastics disposed of on land within 50 km from the coast without proper waste treatment and management. If left, rainfall causes land-based
plastic waste to run into rivers, drainage channels, and the ocean, resulting in marine plastic waste and environmental pollution.

Sanyo Solution Gallery (Mizunami Exhibition Hall)
Many of our customers are in the research/investigation phasein response to the radical shift to EVs. In March 2022, we opened
an exhibition hall in Mizunami City (Gifu Prefecture) as part ofour benchmarking business, mainly to exhibit EV parts and disassembled EV vehicle frames. Since its opening, the exhibition
has been well received by more than 5,000 visitors from automobile, parts, and materials manufacturing companies.
In addition, a traveling exhibition was held in Ota City (Gunma
Prefecture) in October 2023. At the traveling exhibition, we
exhibited parts in addition to giving lectures on the differencesin parts composition between EVs and gasoline-powered vehicles and on safety, cruising range, and infrastructure issues thatneed to be addressed for EVs to become widely used.
In the future, we will continue to deepen our automotive
benchmarking business by expanding the scale of exhibitions,creating new business areas such as an EV maintenance business,and pioneering our way from “product sales” to “service sales.”Epoxidized Natural Rubber
Epoxidized natural rubber is a modified natural rubber prepared to impart properties suchas gas permeability and oil resistance while retaining the excellent mechanical properties
and film-forming ability of natural rubber. Since epoxidized natural rubber can decompose in nature, it has a low environmental impact, and demand for “vegan leather” applications made entirely from natural materials is expected to increase. In response to thisgrowing demand, we have set a goal of doubling our sales scale over the next five years
and will actively expand sales as one of our environmentally-friendly products.

Renewable Energy Initiatives (Geothermal Power)
Geothermal power generation is a clean energy source that is highly effective
in reducing CO2 emissions, and recently, the government has been encouraging the expansion of its installed capacity. Cosmos Shoji Co., Ltd. one of
our Group companies, mainly sells and rents drilling equipment for geothermal power generation, contributing to the expansion of the renewableenergy field. Cosmos Shoji Co., Ltd. expects five to six new drillings every year
and is expected to maintain its high market share.
Largest geothermal power plant in Japan:
Hatchobaru Geothermal Power Plant(Oita Prefecture)

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23

Sanyo Trading Integrated Report 2023

Sanyo Trading’s Strategy

New Long-Term Management Plan SANYO VISION 2028

In light of the market environment that is expected to change more and more, such as the shift of domestic
synthetic rubber manufacturers to next-generation materials and the shift to EVs for automobiles, we haveformulated a new long-term management plan, SANYO VISION 2028 to achieve sustainable growth andincrease corporate value, while continuing the results achieved under our previous long-term management plan, VISION 2023.

Review of the Previous Long-term Management Plan VISION 2023
Basic
Strategies

Strengthening
the corporate
structure

Achievements

Ongoing Challenges

Challenging
ourselves for theBEST solution• The management mission and basic principles became
instilled in employees.

• Our slogan “Challenging ourselves for the bestsolution” remains unchanged from SANYOVISION 2028 onwards as it still needs to become
more deeply ingrained across the Group.

B

Strengthening theCompany’s
foundation• We developed organizations that will serve as thefoundations for growth (New Business Development
Dept., Strategic Logistics Dept., Human Resources &General Affairs Dept., Corporate Planning Dept.).
• We acquired Cosmo Computing System, Inc., tostrengthen inhouse IT function.

• Strengthening corporate functions to accommodate business expansion• Deepening ESG management• Promoting DX

CInvesting in humanresources• We invested in next-generation human resources,developing human resources internally and also hiring
mid-career professionals who can hit the ground running• HR development, education and training• Strengthening of hiring capabilities• Flexible allocation of human resources based on aGroup-wide optimization approach

EnhancingD business in certain
fields• Levering our strengths, we further developed high-valueadded businesses, focusing on four core markets.

• Strategic allocation of resources through greater
selection and concentration

E

Strengthening
the earnings
base

Developing new
businesses• Business divisions: Identified products related to new
businesses based on a product orientation approach and• Strengthening of market orientation approach
expanded sales.
•N urturing of potential core businesses• New Business Development Dept.: Pursued projects thathave synergies with us based on a market-in approach.

Accelerating• We pursued overseas expansion focusing on Asia andthe Americas

Advancing new• We made bolt-on investments in businesses in which• Realization of synergies in investment projects
synergy with existing businesses can be expected such as•P reparation of new pipeline projects
YP Tech and Scrum

F globalization
G investment
projects

Under the previous long-term management plan, VISION
2023, we achieved results in new business development andglobal business expansion. However, we recognize that investment in human capital, both in quality and quantity, and thepromotion of digital transformation (DX) are ongoing• Strengthening of overseas management system• Further expansion of network (Europe, etc.)

challenges. Based on these experiences, the new long-term
management plan SANYO VISION 2028 aims to achieve continuous growth in business areas. At the same time, the Company will further deepen ESG management and focus moreon human resource development.

Our Vision for 2028
Deliver tangible solutions to social issues tomake the world a better place for everyone

Sanyo Trading’s
VisionOur predecessor’s lesson: Don’t do anything that lowers our reputation
Job that makes a positive
impact on society

Job to solve problems
Our Value
Proposition

Comfort and QOL

Decarbonization

Local Production for
Local Consumption

Organic growth of existing businesses

24

Job where we can inspire
children to dream

Building a track record of excellence that addresses:
Safety and Security

Our Business
Foundation

Job that caters to customers and is appreciatedResource andEnergyConservation

×

Human resources

Merchandise andcommercial rights

Open and inclusive

Professional expertiseand know-how

One product, one supplier
Strong relationships of trust

Good corporate culture

Technology-driven,
Maritime Nation

Aging Population

Revitalization ofRegional Economy

Fruition of new businesses

Financialfoundation

Creation of shareholder value (FY2028/9 Targets)
ROE

Growth and financial discipline (FY2028/9 Targets)

10–12%
GrowthSeven Strategies

A

Financial Targets

Global network
16 locations in
10 countries

Operating profit

9.0 billion yen

Shareholder
returns• Based on continuous dividend increases andstable dividends, taking into account consolidated performance and financial condition.
• Acquisition of own stock will be carried out ina flexible and agile manner, comprehensively
considering stock prices and demand forfunds for growth investments.

PBR

Operatingcash flow

Cash surplus

Investment

20.0 billion to
30.0 billion yen(Cumulative for 2023-2028)(business investment, DX investment,
human capital investment, etc.)
Profitability

Operating profit
ratio

5.1%

Stability

Shareholders’equity ratio

50% or more

More than 1

The financial targets in SANYO VISION 2028 are based on“creation of shareholder value” and “growth and financial
discipline.”
The Company aims to achieve an operating profit of
9.0 billion yen, which is stated in the “creation of shareholder value” section, by strengthening the earnings baseof existing businesses and developing new merchandiseas the core. The shareholders’ equity ratio outlined in“growth and financial discipline” is 50% or more, but thecurrent shareholders’ equity ratio is over 60%. Our policy is
to return capital to new investments while aggressively utilizing leverage to optimize our capital structure and effectively use funds for growth.

What we Aim For with the New Long-term Management Plan SANYO VISION 2028
Looking back at the previous
long-term management plan,
VISION 2023, on the quantitative side, the growth rate ofoverseas bases exceeded thetarget of 10%, strongly driving
growth, and both net sales
and operating profit reachedrecord highs. At the sametime, the Company also madeprogress in embedding theplan for the next generation
by enhancing potential corebusinesses and new investYoshimi Namba
ment pipeline projects. On
Executive Officer andCorporate Planningthe qualitative side, steady
Department, Manager
results were seen in the penetration of our management
philosophy, strengthening of corporate functions, anddeepening of ESG management.
SANYO VISION 2028, a new long-term management
plan, was formulated after about a year of company-wide
discussions as a compass for achieving change and growthover the next five years. It follows the basic principles of
VISION 2023 while also taking a bird’s-eye view of theupcoming 100th anniversary of the Company’s founding.
The most time-consuming part of the formulation

process was defining and verbalizing the “vision” we aim for.
What makes Sanyo Trading unique and different from othertrading companies? Based on our predecessor’s lesson,“Don’t do anything that lowers our reputation,” we havecondensed our vision for 2028 into the words, “Deliver tangible solutions to social issues to make the world a better
place for everyone.”
Our strengths, now and in the future, can be summarized in five areas: highly professional personnel with expertise, commercial rights and high-value-added products
backed by strong relationships of trust, a sound financial
foundation, a network of domestic and overseas bases, andan open and inclusive corporate culture. By maintaining
and strengthening the above, we will achieve our vision byaccumulating “good jobs” one by one to drive growththrough organic growth of existing businesses and the realization of new businesses and bolt-on investments, using
the two-fold approach of product orientation and market
orientation. Our specific plans are summarized in the eightpriority measures of SANYO VISION 2028.
Although the external environment is becoming increasingly uncertain, we see change as a business opportunity.
By implementing our eight priority measures, we will further
enhance our resilience and realize our vision to “Deliver tangible solutions to social issues to make the world a better
place for everyone.”25

Sanyo Trading Integrated Report 2023

Sanyo Trading’s Strategy

New Long-Term Management Plan SANYO VISION 2028

Priority Measures and Background of the New Long-term Management Plan
SANYO VISION 2028
The new long-term management plan, SANYO VISION 2028, evolves and expands on the basic principlesof the previous plan, VISION 2023. As a compass for our continued growth and our goal of becoming a
100-year company, we have set forth eight priority measures to achieve sustainable growth based on
megatrends.

4

Strengthening the earnings base
The following four measures will be implemented to realize the VISION.

1
2

We will use a two-pronged market orientation strategy in addition to our traditional strength of product orientation
to increase our competitiveness in our four focus markets. In the future, we will expand our business domain fromselling products to selling services to further strengthen the provision of added value. In addition, we will build a solid
business foundation in an increasingly competitive market by responding quickly to rapid market changes and megatrends and maintaining a leading position at all times.

For us to continue to grow, it is essential that we pursue both growth in our existing businesses and the developmentof new businesses. To focus on bringing potential core businesses to fruition, we are promoting commercialization
through strategic resource allocation and the PDCA cycle. In addition, the New Business Development Department
is working to launch new businesses from a market orientation perspective, looking five to ten years into the future.

Newmaterials
and films

Growth scenario with SANYO VISION 2028
Ocean
resourcesdevelopment

Functional
materials
Food
additives for tires

Sensors toprevent
children frombeing left in
Cosmetics vehicles

Electricalmaterials andNew
Environmentally chemicals
functional friendly products
feeds

Operating profit

Automotive
Naturally
derived benchmarking
materials

200 million yen
or moreStrengthening of earnings base of existing businesses

3

2024

2025

2026

2027

100 million to
200 million yen

2028

Strengthening Consolidated Management Structure
We will further deepen our global business division system
to accommodate Group expansion. We will promote overseas expansion, respond flexibly and effectively to regional
market needs, and strengthen our business base. At thesame time, we will strengthen the functions of the Consolidated Management Promotion Department and enhance
the sense of unity as “One Sanyo” Group-wide. This will
enable faster and more flexible management decisions
and sustainable growth Group-wide.

Balance sheet

Utilization of borrowed capital with a shareholders’ equity ratio of 50% or more and DE ratio of less than 0.5%
as yardsticks

Pre-condition

Importance is attached to business synergy, overseas expansion, and growth potential

Long-term holding

Make investments for growth but do not engage in the buying & selling of assets or speculative investment torealize a capital gain

Operatorship

Take operatorship of businesses by adopting a Buy & Hold stance and determining the direction forprogress ourselves

Business investment

Carefully select business investment deals that match our basic policy and proceed rapidly, flexibly, andproactively.

DX-related investment

Make Digital Transformation (DX)-related investments to increase efficiency, deliver high-added value andwin new business opportunities

Human capital
investment

Make human capital investment in areas such as recruitment, education, and training to promote the idea of
Sanyo as a people company

The following four measures will be implemented to strengthen the management foundation.

AB

50 million to
100 million yen

CCorporate Culture

Corporate culture is the emotional support for employees working for the Sanyo Trading Group and is essential infostering “One Sanyo.” With our sights set on becoming a 100-year company, we will pass on the good corporate
culture inherited from our predecessors to the next generation while elevating it to a level that is difficult to imitate.
We aim to be known as the “Sanyo Trading that is open and inclusive” among the companies listed on the Tokyo
Stock Exchange Prime.
See Page 4–7 for more details.

Human Capital

Our employees are the driving force behind Sanyo as a people company. We will implement various measures thatwill enable self-motivated human resources to grow and take active and exciting actions in sympathy with our MISSION: Deliver the best solutions flexibly and timely so we can help achieve the sustainable development of the global
community and fulfill employees’ aspirations for well-being. We will provide opportunities and a stage for our employees to play a leading role in the Company by promoting the fulfillment of both the “quantity of human resources” and“quality of human resources.”
See Page 52 for more details.

Sustainability

Sustainability is the most critical factor in strengthening the corporate base. We will continue to promote the deepening of ESG management to respond to our expanding business. We will also focus on appropriate disclosure toprovide holistic value to our stakeholders.
See Page 42–47 for more details.

Climate change initiatives

At the meeting of heads of overseas bases

26

Business investment basic policy

Corporate Management

Developing New Businesses

2023

Advancing investment projects is a pillar of our growth strategy, along with developing new businesses. We will proactively consider excellent deals that meet our business investment framework policy and execute them with agility
and flexibility.

Planning to make growth investments totaling 20 to 30 billion yen over 5 years

Growth of Existing BusinessesNewchemicalproducts

Advancing Investment Projects

D

Disclosure of non-financial information

Use of IT

In the fiscal year ended September 2023, Cosmo Computing System, Inc. was made a Group company, and a system
was established to bring system development in-house. Through these efforts, we will promote DX on both the offensive (adding more value to the business in response to digitization) and defensive (improving efficiency through digitization of business operations) sides of the business.

27

Sanyo Trading Integrated Report 2023

Sanyo Trading’s Strategy

Business Overview

The Company consists of product segments based on Business Units, while overseas subsidiaries determine
the allocation of management resources and assess performance separately for each independent­management unit, which are the Group companies. Therefore, the Company has three reportable segments:
the Chemicals Segment, Machinery & Industrial Products Segment, and Overseas Subsidiaries Segment.

Chemicals Segment

Sales Composition Ratio*1
Other*

2

1.0%

Overseas
Subsidiaries
2023年9月期売上高
Segment

29.4%

Chemicals
Segment

Net sales

Although net sales increased from the previous year due to higher sales unit
prices, sales expansion of strategic products in rubber-related products, andsales expansion of newly handled products in chemicals-related products,
operating income was affected by soaring purchase prices due to the weak yen.

Net sales

for the fiscal year ended
September 2023

50,000Operating profit

(Millions of yen)

3,000
37,73440,00031,09230,00031.2%(Millions of yen)

27,5352,510

38,29831,534

2,000

2,017

2,185

1,577
1,285

20,000

Rubber Business Unit

Chemical Business Unit

Life Science Business Unit

10,000(Material Solutions Department)• Chem-Inter Corporation• Sanyo Life Material Co., Ltd.

122.5

1,000

0

2019.92020.92021.92022.92023.902019.92020.92021.92022.92023.9billion yen

Machinery & Industrial Products Segment

38.4%
Machinery &Industrial Products
Segment

Operating Profit
Composition Ratio*1

Automobile interior components performed well throughout the year as production by Japanese automakers recovered. Group companies also contributed to profits, and in particular, M&A activities carried out in the past
contributed to steady profit growth.

47,04440,00032,99330,17833,41436,333Operating profit

(Millions of yen)

6,000

4,500

4,450

4,019
3,401

3,665
3,172

3,000

–3.9

20,000Overseas%
Subsidiaries
2023年9月期営業利益
Segment

Chemicals
Segment

28.4%

Operatingprofitfor the fiscal year ended
September 2023

6.7

billion yen

Industrial Products No. 1
Business Unit / Industrial
Products No. 2 Business Unit
• Freeman (Japan) Co., Ltd.

Green Technology Business Unit

• Cosmos Shoji Co., Ltd.
• YPTECH Co., Ltd.
• Shin-Toyo Kikai Kougyo Co., Ltd.
• Sanyo Machinery Co., Ltd.

Life Science Business Unit

1,500

10,000(Scientific Instruments Department)• Nihon Rufuto Co., Ltd.
• Sanyo Technos Co., Ltd.
• SCRUM Inc.
• KOTAI Biotechnologies, Inc.

Overseas Subsidiaries Segment
Although sales decreased from the previous year, the growth rate of overseas
bases (sales), our quantitative target of the previous long-term management
plan, was 12.9%, exceeding the target of 10%. Profits increased due to arecovery in the U.S. and a weaker yen.

57.9%

0

2019.92020.9• Sun Phoenix Mexico, S.A. de C.V. (Mexico)• PT. Sanyo Trading Indonesia (Indonesia)• Sanyo Trading India Private Limited (India)*1 Composition ratios are calculated based on sales to external customers and segment income(loss) before consolidation adjustments.
*2 “Other” is a business segment not included in the reportable segments. It includes the information
system and real estate leasing businesses. Cosmo Computing System, Inc. is included in “Other.”2022.92023.9(Millions of yen)

50,00002019.92020.92021.92022.9Operating profit

2023.9(Millions of yen)

3,000
36,99240,00020,000• Sanyo Corporation of America (U.S.)• Sanyo Trading (Shanghai) Co., Ltd. (China)• Sanyo Trading Asia Co., Ltd. (Thailand)• Sanyo Trading (Viet Nam) Co., Ltd. (Vietnam)

2021.9Net sales

36,0392,000

30,000Machinery &Industrial Products
Segment

28(Millions of yen)

50,00030,000

Other*2

17.5%

Net sales

24,68918,95018,227
1,000

880

839

2019.92020.9

1,235

1,347

2022.92023.997810,00002019.92020.92021.92022.92023.902021.929

Sanyo Trading Integrated Report 2023

Sanyo Trading’s Strategy

Business Overview—Sanyo Trading’s Overseas Operations

In the Overseas Subsidiaries Segment, we have a total of 16 bases, mainly in North America and Asia,
including China. By aggressively expanding into regions where growth is expected and developing strategies that fit the local market, we provide Japanese-quality services to our customers, especially Japanesemanufacturers.

Japan:

4

History of Our Overseas Network
Established representa- Established representa- Established representa- Established PT. Sanyo Trading
tive office in New York
tive office in Ho Chi Minh tive office in New Delhi Indonesia

Established Sanyo Trading
Europe GmbH

Jan. 1954

Sep. 2023

bases

Sep. 1990

Established San-Thap
International Co., Ltd.
(now Sanyo Trading Asia
Co., Ltd.)

Overseas Network
NagoyaGermany (Munich)Europe:1China:

4

Asia:

Established Sanyo
Trading (Shanghai)Co., Ltd.

Jun. 2013

Established Sun Phoenix
Mexico, S.A. de C.V.

Jul. 2015

Changed the trade name of Bestrade
Precision Singapore Pte. Ltd. toSingapore Sanyo Trading Pte. Ltd.

Sanyo Trading Group
Headquarter

bases

BangkokLaem Chabang

7

Aug. 2002

Aug. 2014

Hiroshima

India (Gurgaon)
Thailand

Sep. 2010

Osaka

Detroit

Tianjin

United States ofAmerica

ShanghaibaseOct. 1992

Guangzhou

Mexico (Irapuato)

Hong Kong
Hanoi
Ho Chi Minh

AlabamaVietnam

New York

North America:

4

bases

Singapore
Indonesia (Jakarta)

bases

China

North America

Main bases

Main bases

Shanghai Office

Guangzhou Office

New York Office

Expansion into the European Region
In September 2023, we established a new subsidiary in
Munich, Germany, which began operations in November.
This strategic development aimed to expand business in
Europe, strengthen local response in existing businesses,
and develop new businesses through intelligence-gathering functions. We already have many customers and business partners in Germany, and we will provide even higher
value-added services, including customer service, without
time differences. Munich is the center of the automotive
industry in Europe and is located in Bavaria, which accounts
for about 30% of Germany’s GDP. It is not just known for its
automotive industry but also as a hub for IT companies andstartups. From a market orientation perspective, we plan tostrengthen our activities in new markets, such as environmentally friendly businesses.

Entrance to Sanyo Trading
Europe GmbH

China subsidiary
Sanyo Trading (Shanghai) Co., Ltd.

Mexico subsidiary
Sun Phoenix Mexico, S.A.de C.V.

Asia
Opening ceremony

Main bases

Singapore subsidiary
Singapore Sanyo Trading
Pte. Ltd.

30

U.S. subsidiary
Sanyo Corporation of America

Bangkok Office

Ho Chi Minh Office

Thailand subsidiary
Sanyo Trading Asia Co., Ltd.

Vietnam subsidiary
Sanyo Trading (Viet Nam)
Co., Ltd.

India subsidiary
Sanyo Trading India Private
LimitedIndonesia subsidiary
PT. Sanyo Trading Indonesia

31

Sanyo Trading Integrated Report 2023

Sanyo Trading’s Strategy

Business Overview
Chemicals Segment

Primary products, sales destinations, and end-use applications

Rubber Business Unit

Products Handled

The Rubber Business Unit is a core rubber industry supplier, importer, and exporter in Japan and o­ verseas.
The unit is focusing on expanding sales of next-generation materials to become a major d­ istributor ofsynthetic rubber and auxiliary materials.

Customer Industry

End Use

Industrial rubber products
Synthetic rubber

Automotive parts/tires

Responding to next-generation demand like a shift to EVs
and secondary materials while addressing urgent issues
like the weak yen
As a summary of VISION 2023, we expanded our core synthetic rubber products, next-generation products, functional products, and auxiliary materials fortires in Japan, horizontally expanded our business to Japanese-affiliated transplants in Asia, and expanded sales of next-generation products in the U.S. andMexico. However, the Company was forced to fall short of its plan for the fiscal
year ended September 2023 due to the impact of the weak yen and customers’
production cutbacks. In particular, the percentage of imported products handled increased as a result of our focus on merchandise that is expected to
expand into next-generation applications, as we tripled the handling volume of
EPDM manufactured by ARLANXEO*, which has the world’s largest synthetic
rubber manufacturing capacity, doubled the stock sales volume of silicones
manufactured by Dow Chemical (Dow Toray Co., Ltd. in Japan), the world’s largest silicone manufacturer in the rubber field, and rapidly expanded the handlingvolume of fluorine rubber compounds manufactured by China-based Sichuan
Dowhon New Materials Co., Ltd. Therefore, we will immediately address theissue of soaring purchase prices due to the weak yen as a material issue.
The Rubber Business Unit’s domestic sales ratio as of the fiscal year ended
September 2023 is 55:45 (synthetic rubber: subsidiary materials), but this ratio is
expected to shift to 50:50 due to new demand, such as the use of epoxidized
natural rubber in vegan leather applications and the expansion of KaMin’s­functional clays for tire and ceramic applications. Accordingly, we will continue
to develop new investment projects in anticipation of increased demand forsecondary materials.
In addition to addressing these issues, we will work to minimize the impact of
the expected decline in the market share of Japanese-affiliated automobiles
resulting from the rapid shift to EVs, which is expected to have a significant
impact over the medium to long term.

Yasushi Komiya

Executive Officer and Rubber
Business Unit, General Manager

Geographic areasGurgaonTianjin

Guangzhou* Wholly owned subsidiary of Saudi Aramco, Saudi Arabia’s state-owned oil company

Japan(Tokyo, Nagoya, Osaka)

Alabama

Ho Chi Minh
BangkokLaem Chabang

32

Jakarta

Consumerelectronics

Tires

Power cables

Lithium-ion
batteries (gaskets)

Rubber reinforcement/filler

Electronic components
Thermoplastic elastomer/resin

Strengths
The Company handles a wide range of rubber products with ARLANXEO*, the world’s largest producer of synthetic rubber,as a major supplierWe provide the same products and services as in Japan through close cooperation between Japan and overseas bases
We provide a stable supply to customers by leveraging a solid financial base. *Wholly owned subsidiary of Saudi Aramco, Saudi
Arabia’s state-owned oil company

Opportunities

Risks

 utomobiles, which account for half of the demand for syntheticArubber, are moving to EVs, and applications for weatherproofing,heat dissipation, and lightweight rubber are growing. Increased
demand for high-value-added and next-generation materials
Restructuring of domestic synthetic rubber manufacturers
due to aging manufacturing facilities and shift to next-generation materials

Continued rise in purchase prices due to the weak yen
 eclining share of Japanese automobiles in the globalD
market due to the shift to EVs

Future Strategies for Growth
Strengthen overseas
development

 xpand the scale of handling major overseas merchandise to meet the demand for syntheticErubber from Japanese and overseas Japanese companies

Expand sales of next-­
generation merchandise xpand sales of environmentally friendly epoxidized natural rubber and other naturally derived
E
functional materials

Respond to the shift to EVs
in automobiles

 ith the shift to EVs, the functions required for end-use components have changed, which meansW
we must provide materials that respond to the trends of the times

Expanding the handling of silicones in the rubber industry by Dow Toray
Industries, the world’s largest silicone manufacturer
New York

Hanoi

High-pressure
hoses

TO P I CS

Detroit

ShanghaiHong Kong

Sealing materials
for automobiles

Irapuato

Since we began selling Dow Toray’s commodity silicone rubber in stock in 2009, we have
gradually increased the number of products we handle and deepened our relationship withthe company. We have established an SDS (Safety Data Sheet) download function alongwith a list of Dow Toray products in CHEMBASE, our Group’s comprehensive product database, and responded to technical inquiries from this page, thereby improving customer convenience about Dow Toray products. In addition, we have assigned Rubber Business Unit
personnel to each of our bases, including those overseas, to ensure that we are able torespond promptly to inquiries from customers regarding silicone rubber, as well as to ensure
proper inventory control and transportation management. These comprehensive evaluations enabled us to double our Dow Toray silicone rubber inventory sales volume.

Dow Toray silicone rubber

33

Sanyo Trading Integrated Report 2023

Sanyo Trading’s Strategy

Business Overview
Chemicals Segment

Primary products, sales destinations, and end-use applications

Chemical Business Unit

Products Handled

By building close and strong relationships of trust with several dozen overseas chemical manufacturers,
we are able to sell a diverse range of high-performance products and provide a high level oftechnical services.

Customer Industry

End Use

Painting materials
Photoinitiator/UV absorber
Inks

Inks and printed
matter

Wax

Shifting to new demand by leveraging each salesperson’shigh level of knowledge and the organizational strength of
the Business Unit
During the VISION 2023 period, the Business Unit, in which more than 60% of
employees have chemical or pharmaceutical backgrounds, successfully
expanded its product lineup and launched a large-scale product lineup that has
become a pillar of the Business Unit by leveraging its sales force and organizational structure that manages markets, not regions, based on the knowledge of
its employees. In particular, in this Business Unit, where organizational strength
is a strong point, we were able to increase the number of sales department
members by five in the fiscal year ended September 2023, to a total of 24, which
we feel will be a significant driving force for future expansion of the Business
Unit. As a specific strategy for the business, the Business Unit will shift its focus
from inks, paints, coatings, resins, plastics, and adhesives, where no significant
growth in market size is expected, to the high-end market represented by electric materials, motors, batteries, and sensors, thereby shifting the focus of theBusiness Unit’s core products. At the same time, to respond to the growing
awareness of supply chain management in recent years, we intend to strengthen
our handling of environmentally friendly products while handling chemical raw
materials mainly in Thailand, Vietnam, Indonesia, and other Asian countries. In
the fiscal year ended September 2023, we acquired ISCC PLUS certification(International Sustainability Carbon Certification), which will further promote theshift of products we handle to environmentally-friendly products. We intend to
take advantage of this positive trend to expand, contribute to realizing a sustainable society, and develop as a Business Unit.

Hideki Ohata

Chemical Business Unit,­General Manager

Geographic areas

GurgaonTianjin

Guangzhou

Japan(Tokyo, Nagoya, Osaka)

Detroit

Alabama
Hanoi
Ho Chi Minh

BangkokLaem Chabang

Jakarta

Silane coupling
agentsPlastics
Plastic products

Automobile coating

Strengths
 umerous products handled, mainly functional products for paints, inks, adhesives, coatings, and plastics
NExpertise and technical sales skills of technical sales department staff handling high-value-added products
Ability to develop new commercial products, including environmentally friendly products

Opportunities

Risks

 emand for raw materials for UV, a core commercial
D
product, is expected to grow
Stable domestic demand with overseas demand is
expected to grow in the future
Accelerating sales in all markets, including Asia

Impact of new environmental regulations on the products
we handle
Changes in demand resulting from market trends

Future Strategies for Growth
Expansions into the Asia region

 trengthen handling of environmentally-friendly products in upstream raw materials
S(­commodity chemicals)Strengthen handling ofenvironmentally-friendly products

Promote a shift from petrochemical-based products to environmentally friendly products

Focus on the high-end market

Capture demand in growth markets such as raw materials for displays and semiconductors

TO P I CS
New York

Shanghai

Paints for exterior
walls

Adhesives

Pigments

Specialty monomers

Adhesives

Expansion of AlzChem and Evonik products through business transfer
Following a business transfer, we began handling AlzChem’s silicon nitride
powder. Silicon nitride is highly effective in preventing electrical corrosion and isa product for which demand is expected to increase for use in EV vehicle components and power semiconductor substrates. In addition, a similar transfer ofbusiness has also enabled us to expand sales of Evonik’s products, allowing us tofocus more on the silane coupling agent business in the future. These results are
based on the trust we have built over many years of business relationships with
our suppliers due to their evaluation of our technical sales and high expertise.
Products using AlzChem silicon nitride powder

34

35

Sanyo Trading Integrated Report 2023

Sanyo Trading’s Strategy

Business Overview
Machinery & Industrial Products Segment

Primary products, sales destinations, and end-use applications

Industrial Products No. 1 and No. 2 Business Unit

Products Handled

We develop, import, and sell high-value-added and highly functional automotive interior components.
We handle a wide range of products that increase the added value of automobiles.

Benchmarking services
using scanning

Lumbar support

Gas springs

Seat heater

Seat sensors

Expanding business areas into next-generation commercial fields, domestically and internationally, by extending
the results of benchmarking business and moreIn the fiscal year ended September 2023, we recovered our performance fromthe fiscal year ended September 2022, when we suffered from a trend of production cutbacks due to the COVID-19 pandemic and semiconductor shortages, significantly outperforming our plans. Specifically, the Industrial Products
No. 1 Business Unit was able to expand sales of TOTOKU’s products in nicheareas in addition to its main business areas, and the Industrial Products No. 2
Business Unit was able to expand sales of Leggett & Platt’s main products, which
contributed to achieving our plans. In new business, sales of Caresoft products
such as Iceburg, which uses the latest vehicle disassembly and analysis information as benchmark data, and Digital Twin, which provides highly accurate 3D
CAD/CAE models, grew steadily. Sales also grew for sensors to prevent children
from being left in vehicles on buses used to transport children to and from nursery school, as these devices have become mandatory. On the other hand, themobility field, the product area handled by this Business Unit, is approaching asignificant turning point, typified by the shift to EVs and automated driving. In
response to this turning point, we will aim to expand our products and services
to generate large profits in the entirely new next-generation product field byrestructuring the organization dedicated to new business and allocating personnel dedicated to developing new commercial products. In the future, we
intend to expand our global operations by broadening the scope of our nextgeneration products and services, which are gradually expanding overseas.

Rintaro Harada
Industrial Products No.1
Business Unit,
General Manager

Akira Watanabe
Industrial Products No.2
Business Unit,
General Manager

Geographic areas

Seat motors

Customer Industry

End Use

Automotive parts andmaterials manufacturers

Automotive
MobilityStrengths
 e are developing an integrated business model from sales, development, and design to quality assuranceWJust-in-time delivery of overseas commercial products customized to Japanese quality following manufacturers’ requests
As an independent trading company, we have established business relationships with all Japanese automakers

Opportunities

Risks

 echnology innovations such as EVs, automated driving,T
MaaS, and othersChange in demand for automotive parts with progressin CASEBuild businesses unique to global locations

 eclining market share of Japanese automakers in theDglobal market, especially in China, due to a rapid shift to EVs
Increasing commoditization of existing commercial products

Future Strategies for Growth
Support the shift to EVs

Development of interior components and sensors that will be in increasing demand with the shift to EVs

New business initiatives

Promote new businesses, including sales of “services,” and secure new suppliers in response to megatrends

Further strengthening ofexisting businesses urther strengthen relationships with existing suppliers, particularly for interior components, which isF
our business base, and improve our ability to make proposals to customers

MunichGurgaonTianjin

Guangzhou

Japan(Tokyo, Nagoya, Osaka)

TO P I CS

DetroitOverseas Business Development
New York
AlabamaShanghai
Irapuato

BangkokLaem Chabang

36

In our Alabama (U.S.) office, the demand for automotive industrial materials
has been increasing since April 2023, amid the easing shortage of semiconductors, parts, and workers from the COVID-19 pandemic. To this end, Japanese automakers’ new car sales have continued a V-shaped recovery from2022 figures. Although this office was opened in January 2021 and is a smallbase, we expect to expand our business domain in the future in response tothis trend of increasing demand for automotive industry materials. In addition, a global sales vehicle production system was fully launched in November 2023 at the Laem Chabang (Thailand) office, where transactions forvehicles sold in Thailand began in May 2023. The Business Unit will continue
to promote overseas business development.

Above: Laem Chabang Office
Left: Alabama Office37

Sanyo Trading Integrated Report 2023

Sanyo Trading’s Strategy

Business Overview
Machinery & Industrial Products Segment

Green Technology Business Unit

Primary products, sales destinations, and end-use applications
Products Handled

Green Technology Business Unit will introduce to Japan outstanding overseas technologies, such as
powdered food, feed, and fertilizer and woody biomass granulators, and promote food safety andrenewable energy in Japan.

Striving to expand sales of new products and strengthen
proposal capabilities while maintaining a high sales level ofsales force to adapt to the changing market environment

Kenichiro Mohara
Green Technology Business
Unit, General Manager

The Business Unit’s results for the fiscal year ended September 2023 were harsh
due to major feed customers significantly cutting back on capital expendituresand failing to win orders for large projects in the woody biomass field. On theother hand, we were able to maintain a market share of over 90% for CPM’spellet mills for the livestock and formula feed markets, even amid difficult business conditions, which is a testament to the high reliability of the equipment we
handle and the continued support for the quality of service provided by oursales and maintenance staff. In addition, the expansion of new business applications from wood pellet production using logs as raw material to wood pellet
production using lumber shavings, which led to further sales expansions of
CPM’s pellet mills, was also a positive factor despite the poor performance.
As for the market environment in the future, feed mills are expected to
become larger and larger as the consolidation and elimination of main customer mills progresses. In the future, we will promote product development andproposals that match these large-scale factory-oriented needs. Specifically, torespond to the desire for larger-scale plants, we will strengthen our operations,which range from equipment design for livestock and compound feed to engineering. Simultaneously, we will respond to the growing social awareness ofsustainability by expanding sales of thermal barrier cooling film*, which is
expected to save cooling energy from electricity.
* In October 2022, the Company entered into an investment and business alliance with SOLCOLD
LTD., which researches and develops coating films based on a cooling effect using sunlight.

Pellet mills

Low-temperaturewater-type belt dryer
for wood chips

Food, industrial products, etc.
Gasification units

Biomass group
Local governments andforestry cooperatives(various pellets)

Combines heat andVarious hammer mills power units

Private companies (forestry,electric power companies,
power generators, etc.)

Renewable energy

Strengths
CPM’s pellet mill for feed, which boasts an overwhelming market share he ability to provide total solutions from equipment sales, plant design, and construction to after-sales service
TGroup companies in the highly profitable sustainability area

Opportunities

Risks

 ignificant capital investment in feed mills in conjunction
Swith consolidation and rationalization of main customer mills
Growing demand for renewable energy due to increasing
public awareness of sustainability

 elays in delivery due to parts shortages, etc.
D
State-by-state policy changes in renewable energy promotion measures

Future Strategies for Growth
Capture large capital
investments

 apitalize on positioning to capture capital investment demand
CStrengthen operations that extend into equipment design and engineering for livestock andformula feed

Developing new
businesses xpand application from wood pellet production using logs as raw materials to wood pelletE
production using lumber shavings
Expand sales of compost pelletizing equipment for effective utilization of livestock excrement as
fertilizer and reduction of soaring chemical fertilizer usage

TO P I CS
Initiatives for wood waste pelletizing equipment and compost pelletizing equipment
CPM’s pellet mills, which have one of the largest market shares in Japan for feed pellets, are expanding the areas where they can be manufactured. Lumber shaving pellets are one of these, attracting
attention along with the recent increase in demand for wood building materials in Japan because
they enable effective use of lumber waste generated during the processing of wood building materials. It is also attracting attention from an environmental standpoint as an eco-fuel because it can besubstituted for fossil fuels, and we began handling the product in the fiscal year ended September
2023. Another notable CPM pellet mill is their compost pellet production facility. Compost pellets,
which is a way of properly composting livestock waste and returning it to farmland, are expected tocontribute to sustainable agriculture in Japan by curbing greenhouse gas emissions from livestock
waste disposal and reducing the use of chemical fertilizers, the prices of which have soared dramatically in recent years. The Business Unit will continue to explore the possibility of commercialization
while handling these products that contribute to society and the environment.

38

End Use

Feed and fertilizer

Geographic areas

Japan (Tokyo)

Customer Industry
Powder group

CPM pellet mill

39

Sanyo Trading Integrated Report 2023

Sanyo Trading’s Strategy

Business Overview
Chemicals Segment

Primary products, sales destinations, and end-use applications
Material Solutions Department
Products Handled

Machinery & Industrial
Products Segment

Electronic materials

The objective of the Life Science Business Unit is to improve people’s health and quality of life (QOL)
and realize an environmentally responsive society. The unit handles materials and scientific instrumentsthat contribute to industrial development and provides total solutions tailored to customer needs.

Aiming for growth as a Business Unit through the p­ romotionof biotechnology-related businesses and global expansion
This Business Unit, established in 2021, has been striving to deepen its related
fields to contribute to improving people’s health and quality of life and realizing
an environmentally responsive society by providing materials and scientificinstruments that contribute to the development of a wide range of industrial
fields, including healthcare, food, chemicals, and the environment.
In the fiscal year ended September 2023, we saw steady growth in particle
dispersion evaluation systems and other scientific instruments, as well as growthin the battery and electrical materials-related business, which we have beendeveloping as a new business for several years, and our M&A moves for thebiotechnology-related business of Scrum Inc. and KOTAI Biotechnologies
becoming pillars of our business, all leading to a year in which the businesses
that we have planted seeds for have blossomed.
We are also seeing growth in global business development, as in the past,
many of our business activities were one-way, originating from Japan and destined for Japan. In recent years, we have seen an increase in business transactions utilizing overseas bases in the film business, electronic materials business,and dyes business, and the volume of super absorbent resin handled in the
personal care-related business in North America has grown significantly compared to five years ago.
Since we are still in our infancy as a Business Unit, we intend to grow by proactively strengthening cooperation with Group companies and overseas bases
and further investing in new projects in Japan and overseas. This will improve
people’s health and quality of life and contribute to realizing an environmentallyfriendly society.

Executive Officer andLife Science Business Unit,
General Manager

End Use

Electronic components

Life Science Business Unit

Koji Taguchi

Customer Industry

Cosmetics(raw materials/containers)

Various films

ChemicalsElectronics/batteries

Aromatics

Pet food

Diapers

Cosmetics

FoodTechFragrances

High-performance resins

Scientific Instruments Department
Products Handled

Food products

Customer Industry
Private-sector businesses

Wettability evaluationequipment

Particle evaluationequipment
Weather resistancetesting equipment

End Use
Research andProduction control
development (R&D) inspection
quality control

Research institutions(universities, etc.)

Government agencies

Strengths
 evelopment of business in collaboration with each base on a global business foundation
DHuman resources with expertise and professional knowledge at domestic Group bases and a team that drives the businessHandling of materials and scientific instruments supporting advanced technologies in the life science field

Opportunities

Risks

Increased awareness of health due to the aging population,
increased awareness of quality of life, and increased demandfor pets
Realization of the “Nation of Science and Technology” as
the first pillar of the Japanese government’s growth strategy
and global efforts toward decarbonization, such as the Paris
AgreementMarket expansion in the electronic materials areaImproved quality of Chinese-made products in the Chinese
market and their increase in the market share
Changes in demand for raw materials and measuringequipment due to changes in end-user demand

Future Strategies for GrowthGeographic areas

GurgaonJapan(Tokyo, Osaka)

Sales enhancement

Further strengthen digital marketing consulting

Strengthen biotechnologyrelated businesses xpand our business domain by utilizing services lines of the biotechnology-related businesses ofE
Scrum Inc. and KOTAI Biotechnologies, Inc.

Promotion of industryacademia collaboration

 romote product development in collaboration with universities and various research institutions
PExpand collaborative business between Business Units and overseas subsidiaries

New York
Shanghai
Hanoi
BangkokLaem Chabang

40

Ho Chi Minh
Singapore
Jakarta

TO P I CS
Digital marketing initiatives
The Scientific Instruments Department of the Life Science Business Unit focuses on digital marketing. The department aims to acquire and nurture more leads by promoting
optimal marketing tailored mainly to the characteristics of our products and markets. In
particular, they have been holding several webinars for the automotive industry on corrosion testing, wettability evaluation, material identification, and particle dispersion, one ofour digital marketing focuses, with steady results.

At the webinar

41

Sanyo Trading Integrated Report 2023

Management Foundation

Basic Sustainability Policy/Material Issues

Realizea sustainableinternational
community[ What ]Material issues[ Where ]Sustainability
initiatives= Materiality

VALUES[ How ]

Approach<Slogan>
Challenging
ourselves for
the BEST
solution

Resolvesocial issues

Aim forcompatibility

Achievemedium- tolong-termbusiness
growthRanking ofimportanceDesignation ofmaterial issues

42

In the fiscal year ended September 2023, we expanded salesof environmentally-friendly chemicals manufactured using
renewable raw materials, introduced high-quality plastics produced from waste plastics, and sold detection sensors to prevent accidents involving children being left in cars. These efforts
contributed to “resolving social issues through business.” On theother hand, working through digitalization by incorporating
Cosmo Computing System, Inc. as a Group company, promoting health management, and developing an environment thatenables diverse work styles such as remote work and staggered
working hours have contributed to “strengthening the businessbase that supports sustainable growth.” Overall, we have a certain level of results in our materiality initiatives.
We will continue to enhance information disclosure based on
TCFD recommendations and further improve the working environment through the Sanyo Academy (see Page 52) and SanyoWork Style (see Page 53), and by developing our materiality­initiatives, we aim to achieve both the realization of a sustainableglobal society and medium- to long-term corporate growth.

We designated material issues to be given particular priority by the Group and submitted them for approval by
the Board of Directors (including outside directors).

Very highMaterial Issues

Very highImpact on the Group’s businesses

Sanyo Trading’s Materiality
As shown in the figure below, we have identified material
issues to meet the expectations of our various stakeholders
and contribute to the “sustainable development of theinternational community,” as stated in our mission.
To address the Sustainable Development Goals (SDGs),
we are promoting corporate activities by linking the SDGs

Message from the Sustainability Committee Chair
Based on the two goals of realizing our new vision, to “Deliver
tangible solutions to social issues to make the world a better
place for everyone” and solving social issues through “Challenging ourselves for the BEST solution,” we have positioned
sustainability as a material management issue and are implementing a variety of measures.
We have identified two material
issues and enhancing our efforts
in: “resolving social issues throughbusiness” with the themes of“reducing environmental impact”
and “providing a fulfilling lifestyle”
and “strengthening the businessbase that supports sustainablegrowth” with the themes of “building a resilient management strucToshiaki Mizusawa
ture” and “empowering highlyManaging Director
motivated and diverse human
Chair of the Sustainability
resources.”
Committee

To identify and classify the issues, we carried out a Groupwide brainstorming program on the themes of “resolvingsocial issues through business” and “strengthening thebusiness base that supports sustainable growth.”
We evaluated the issues on two scales: the effect of theissues on stakeholders and the effect of the issues on theGroup.

Step2

Step3

Interconnection of concepts

MISSION

VISION

Recognition ofissuesprogressing steadily with materiality-related initiatives, wewill make appropriate revisions in response to social trends
and other factors.

ステークホルダーに対する影響

At Sanyo Trading, we have set our Management Mission, “We foster an open, down-to-earth, and entrepreneurial corporate
culture that drives our collective efforts to deliver the best solutions flexibly and timely so that we can help achieve the sustainable development of the global community and fulfill employees’ aspirations for well-being.” Sanyo Trading’s vision is to“Deliver tangible solutions to social issues to make the world a better place for everyone.” In promoting this mission and vision,
the Sanyo Trading Group has positioned sustainability initiatives as a material management issue. We will work to solve social
problems such as reducing environmental impact, aiming to build a sustainable international society and achieve medium- tolong-term corporate growth.

Identify
for management
material issues

In July 2022, we designated our materiality (material issues
for management) with a view to achieving sustainable corporate value increase through our businesses. While

Step1

Basic Sustainability Policy

Philosophical framework

Designating Sanyo Trading’s Materiality

Impact on stakeholders

We regard sustainability initiatives as a material issue and aim to resolve social problems by challenging
ourselves for the BEST solution to realize both a sustainable global society and medium- to long-term corporate growth. Under the Sustainability Committee established in April 2022, we will accelerate our efforts
to address material issues.

Stakeholders

to materiality, and through our business activities, we will
work on “reducing the environmental impact” and “providing a fulfilling lifestyle.” In addition, as a management baseto support our business activities, we are “reinforcing solidmanagement structure” and “active participation of diverse
motivated human resources.”

Resolving Social Issues through Business

Strengthening the Business Base that
Supports Sustainable Growth

Reducing
the Environmental Impact

Providing a Fulfilling LifestyleReinforcing SolidManagement Structure

Active Participation of Diverse
Motivated Human Resources

Contribute to climatechange countermeasuresand a circular economy
by handling environment-friendly products

Contribute to healthy,
secure, and comfortable
lifestyles through discovery of new products andstable supply

Ensure financial soundness and strengthen
corporate governanceand legal compliance

Develop human resourcesthat create new value,
respect their diversity, andprovide them with opportunities for active participation

Earth

Customers

Shareholders

Employees

SDGs

43

Sanyo Trading Integrated Report 2023

Management Foundation
Resolving Social Issues through Business

Reducing the Environmental Impact

Disclosure based on TCFD Recommendations
Basic Approach to Climate Change

Climate change is one of the most critical challenges facing
global society, and the effects of climate change are having asevere impact on the environment and society as well as on
people’s lives and business activities. With the conclusion of
the Paris Agreement in 2015, in which the international community will work together to reduce greenhouse gas emissions, expectations for the role of the private sector are
increasing. Sanyo Trading has designated addressing climatechange as one of the material issues it is addressing under theheading of “reducing environmental impact” and in December 2022 declared its endorsement of the TCFD* recommendations. In accordance with the TCFD recommendations, wewill assess climate change-related risks and opportunities andreflect them in our management strategy and also enhance
related information disclosure.

*TCFD: Task Force on Climate-related Financial Disclosures
Established in 2015 by the Financial Stability Board (FSB) at the request of
the G20. Its recommendations state that enterprises should assess thefinancial impact of climate change-related risks and opportunities and thendisclose related information on governance, strategy, risk management,
and indicators and targets.

Governance

Basic management policy on climate change and related business activities and corporate policies and strategies areplanned, drafted, and presented by the Sustainability Committee, which is under the president’s direct control.

The Sustainability Committee Chair reports to the Boardof Directors at least once a year on the policies and resultsof activities approved by the Sustainability Committee. In
addition, material issues are brought up for discussion at
Board of Directors meetings.
The activities of the Sustainability Committee are reported
to the Committee of Executive Officers, which meets monthly,
as appropriate, and the members of the Committee of­Executive Officers report their findings at regular meetingsof each Business Unit and office, thereby creating a systemshared throughout the Company.
The Board of Directors receives proposals and reports
from the Sustainability Committee, provides instructions
and supervision, oversees the committee’s activities on climate change, and deliberates and decides on importantmatters such as management policies and annual budgets
that consider sustainability issues, including climate change.

Climate Change Agenda Items for Sustainability Committee Meetings

2022

2023

• Formulation of a basic sustainability policy• R evision of materiality• TCFD initiatives, etc.

• Calculation of greenhouse gas emissions• Setting greenhouse gas emissions reduction targets• Respond to the CDP survey• Enhancement of TCFD disclosure documents

Sustainability Promotion Structure

Strategy

Board of Directors
Submission and report

Instruction and supervision

Sustainability Committee

President & CEO
ReportCommittee of Executive officers

Cooperation

Sustainability Committee Secretariat

Business and Administration Divisions / Domestic and Overseas Group Companies

The Sustainability Committee is chaired by the director
in charge of sustainability, who is appointed by the president. The Sustainability Committee chairperson appoints
members from the Business Divisions, Administration Divisions, and organizations directly under the president, suchas the Corporate Planning Department. If deemed necessary, the committee chairperson may request attendancefrom Group companies and exchange opinions with outside experts. The chairperson gives final approval to the
Sustainability Committee’s discussions.

Sustainability Committee
Committee Chair
Committee Members

Managing Director (in charge of administration and sustainability)

Classification

Less than 1.5 °C
to 2 °C scenario

Directors (in charge of Business Units), General Managers of the Corporate Planning Department, Human
Resources & General Affairs Department, Finance & Accounting Department, and IT Promotion Department

In principle, the Sustainability Committee holds a regularmeeting every three months and may have ad hoc meetings
as needed. The committee approves policies and plans forvarious measures to address sustainability issues, including
climate change, and monitors and decides on measures. The
Sustainability Committee Secretariat, consisting of members

44

Scenario analysis
We analyze the changes in the external environment causedby climate change and classify the associated factors into“transition risk” and “physical risk.” We then designate andevaluate associated risks and opportunities for the Group’sbusinesses.
To assess the impact on our businesses, we identify itemswith a significant impact and undertake a scenario analysis.
We identify transition risk under the headings of regulation,technology, markets, and reputation, while physical risk isdivided into urgent and chronic risk. Opportunities, meanwhile, are analyzed in terms of products and services andresource efficiency.

selected from the Corporate Planning Department andAdministration and Business Divisions, is responsible fororganizing sustainability-related issues, planning measures,monitoring the implementation of measures, and promoting sustainability activities throughout the Group.

4 °C scenario

By responding to risks related to climate change andstrengthening our efforts to address opportunities, we aim
to reduce our environmental impact and achieve mediumto long-term corporate growth.
Example scenarios
The following scenarios from the International Energy
Agency (IEA) and the Intergovernmental Panel on Climate
Change (IPCC) are used to evaluate new business opportunities and business resilience and to analyze the impact on
our business when our business environment changes significantly due to climate change.

Scenario overview

Main example scenarios

International Energy Agency (IEA)
With the global trend to limit the average temperature
Net Zero Emissions by 2050 Scenario (NZE)
increase to less than 1.5 °C to 2 °C, laws and regula• Backcast scenario based on global net-zero achievetions and technological innovations are progressing,ment in 2050
and these social changes due to decarbonization willaffect our businesses
Sustainable Development Scenario (SDS)• Sustainable growth scenario to achieve carbon
Compared to the 4 °C scenario, the transition risk isneutrality by 2070 to achieve the goals of the Parishigher while the physical risk is lower.
Agreement and the SDGs
Despite implementing the Paris Agreement and othernational policies to reduce greenhouse gas emissions,natural disasters caused by climate change will intensify and affect our businesses as the average tempera- Intergovernmental Panel on Climate Change (IPCC)
ture rises by about 4 °C.
RCP 8.5
Compared to the less than 1.5 °C to 2 °C scenario, thetransition risk is lower while the physical risk is higher.

45

Sanyo Trading Integrated Report 2023

Management Foundation
Resolving Social Issues through Business

Reducing the Environmental Impact
Risk Management

Risks and Opportunities
Classification

Regulation

Less than 1.5 °C
to 2 °C scenario(transition risk)

Risk

Introduction of acarbon tax• As we transition to ade-carbonized society, we
expect to incur additionalcosts related to GHG
emissions and energy
usage fees for purchased
raw materials andtransportation due to theintroduction of carbon
taxes in various regions
worldwide

Reputation

More acute
risks

High

MediumSupplier response
to decarbonization• We expect warehousing
and logistics-related costs
to rise as suppliers invest
capital to respond to
decarbonization.

High

Stakeholder
demands for
decarbonization
efforts• We expect customers toterminate transactions or
reduce the volume oftransactions if we fail totake environmental
considerations into
account.

Increased risk ofwind and flood
damage due tomore severe
disasters• We anticipate that heavy
rains will close roads, inaddition to typhoons andother strong winds
disrupting transportationand logistics infrastructure, increasing transportation-related costs.
• We expect to incur
opportunity losses
because we will not beable to deliver our
products to ourcustomers due to theirinability to receive
products from operational
shutdowns due todisasters.
• We expect that frequentdisasters will result inhigher premiums for
accident and disasterinsurance.

* This is planned to last until 2030.

46

Likelihood of
occurrence• In the medium to longterm, we expect a
decrease in demand for
petroleum-derived
materials in productmanufacturing, reducing
demand for the
petroleum-derived
commercial products wehandle.

Transition to
decarbonizedTechnology
commercial
products

Market

4 °C scenario(physical risk)

Item

Low

MediumFinancial
impactOpportunity

Main measures

High• We expect to increase
revenues by developing
commercial products thatcan contribute to CO2emission reductions andthat do not emit CO2• We have already started
handling environmentallyfriendly commercial materials,
such as alternative raw materials
derived from plants andrenewable raw materials, and wewill promote and strengthen thehandling of more environmentally-friendly commercial
materials toward 2050.

Medium• In the short term, we
expect an increase indemand for thecommercial products wehandle due to increased
demand for petroleumderived raw materials in
manufacturing products
due to global economic
growth and other factors.

• We will fulfill stable supply tomeet demand.
• We will promote and strengthen
the handling of environmentallyfriendly products in line with theshift to low-carbon/decarbonization and beyond over the
medium to long term.

Medium• We expect this to lead to
reputable factories as theywork to decarbonize their
entire supply chain.

• We will work with suppliers topromote low/decarbonization
throughout the supply chain,including improving logistics
efficiency.

Medium• If we are proactive in ourefforts to address climatechange, we can expect togain new revenue
opportunities from
customers concerned
about environmental
issues and attract talented
people concerned aboutclimate change.

• We will proactively disclose
information on climate change
initiatives to customers,
institutional investors, and otherstakeholders.

Medium tohigh• We expect to meet ourclients’ expectations tostrengthen the resilienceof their supply chains,which will lead tocustomer retention andexpansion.

• We will ensure stable supply
through coordination among
distribution bases.

Climate Change Risk
The Sustainability Committee, whose members are appointed
from Business and Administration Divisions and organizations
directly under the president, conducts scenario analyses froma long-term perspective according to the characteristics of climate change risks, evaluates and analyzes the level of significance based on the two axes of “likelihood of occurrence”
and “financial impact,” and considers regulatory requirements
related to climate change to identify and address risks. In
addition, the Sustainability Committee reports promptly to
the Board of Directors on the progress of risk responses. As
such, the Board of Directors directly monitors the committee.
Furthermore, the Risk Management Committee, discussed
below, also monitors the Sustainability Committee’s response
to risks.
Group-wide Risk Management
The Group has established its Risk Management Regulations and operates a risk management system Group-wide.
The Board of Directors appoints the director in charge of risk
management, and the Risk Management Committee has
been established as an organization to oversee risk management for the Group. The committee is chaired by the director in charge of risk management and consists of members
appointed from Business and Administration Divisions andorganizations directly under the president. In addition, we
have established and are implementing action guidelines,
communication and initial response systems, and a business
continuity plan in the event of an emergency.
Risk Management Committee
The Risk Management Committee meets regularly, in principle once every six months, to review risks across the entire
Group and identify environmental risks (including climatechange risks), credit risks, and financial risks (among othertypes of risks) as risks to place importance on. The committee also monitors risks and their management status byreceiving risk assessment reports from each department incharge of risk and reports the results to the Board of Directors. Interviews are conducted with representatives ofGroup companies as part of Group-wide risk management.
In addition, the committee periodically reviews risk items tobe addressed and their details in response to changes insocial conditions and other factors.

Indicators and Targets

We believe our carbon neutrality is as essential as our contribution to society’s carbon neutrality. As a specific policy tocontribute to the transition to a decarbonized society, we
have established a target to achieve net zero greenhousegas (GHG) emissions (Scope 1 and 2) by 2050 comparedto the fiscal year ended September 2022. In addition, by2030, we aim to halve GHG emissions (Scope 1 and 2)
compared to the fiscal year ended September 2022, as partof the process toward 2050.
We plan to begin calculating emissions for some categories of the entire supply chain in Scope 3 in the fiscal year
ended September 2023. We will consider expanding thescope of calculation based on future circumstances.
In setting GHG emission reduction targets, we calculated
GHG emissions based on the fiscal year ended September
2022. In the future, we will periodically calculate GHG emissions and promote energy conservation and renewableenergy (e.g., use of LEDs, purchase of renewable energy,
switching to company vehicles with less environmental
impact, etc.) to reduce GHG emissions. In addition, bystrongly promoting GHG emission reduction contributions
through the provision of commercial products and services,
as typified by environmentally-friendly products and woody
biomass power generation operations, we aim to realize
this goal and contribute to achieving a net-zero society.
Emissions from Our Supply Chain
Our Group
supply chain emissions
Scope1

Year ending September 2022
GHG emissions[t-CO2]

Percentage of
total
[%]

278

45.4

Scope2

334

54.6

–

–

Total

612

100

Scope3• Market approach• GHG emissions are calculated based on the GHG protocol• Scope 3 is not yet calculated for the year ending September 2022

47

Sanyo Trading Integrated Report 2023

Management Foundation
Resolving Social Issues through Business

Reducing Environmental Impact

Expanding Sales of ISCC PLUS Certified Products

Uchiko Ryuoh Wood Biomass Power Plant Wins Wood Design Award

The environmentally friendly resin raw materials our business
partner Perstorp produces are chemically identical to fossilbased products, but their raw materials are derived fromrenewable or recyclable sources. This environmentally friendly
resin raw material is certified with ISCC PLUS (International
Sustainability and Carbon Certification). The ISCC (International Sustainability and Carbon Certification) is an international certification related to sustainability and carbon
emissions. The ISCC PLUS certification system manages
products to ensure they are made of sustainable raw materials such as biomass raw materials, recycled materials, etc.
manufactured using the mass balance method* which areproduced in areas outside of the EU and sold globally
through supply chains. By obtaining ISCC PLUS certification,
Sanyo Trading can now handle ISCC PLUS-certified products
around the world, including in areas outside of the EU. In
addition, since we can issue a formal sustainability declaration (SD) to certify the amount of GHG emission reductions
for each of our business partners, we will expand our supplyof ISCC PLUS certified raw materials, not limited to those produced by Perstorp, further supporting our customers in
reducing greenhouse gas emissions in their supply chains.

A collective of five companies, Sanyo Trading, Naito Kogyo,
Cypress Sunadaya, Takenaka Corporation, and Nippon
Engineering Consultants Co., Ltd., came together to create
Uchiko Ryuoh Biomass Energy. This is a leading model forregional cooperation in woody biomass power generation
operations. The Uchiko Ryuoh Biomass Power Plant began
operation in October 2022 in Uchiko Town, Ehime Prefecture. In 2023, this power plant was recognized and awarded
an honorable mention in the Wood Design Award*, which
recognizes and awards achievements in wood design. Thisinitiative aims to solve social issues through the use of wood.
We will continue to focus on contributing to the local community and furthering environmentally-friendly initiatives.

* A management and calculation method that assigns the derivation rate ofsustainable raw materials to a final product according to the percentage
of biomass-derived or other sustainable raw materials mixed with petroleum- or other fossil fuel-derived unsustainable raw materials in the
production of products. This method is drawing attention as an important
method of increasing the penetration of renewable resources. In thechemical industry, it has also attracted an increasing amount of attention
as an effective way to transition to a circular economy.

Uchiko Ryuoh Biomass Power Plant

Circular Leather: QUARTECHQUARTECH is a textile product jointly developed by Sanyo
Trading, which is knowledgeable in the chemical field fromhandling a wide range of chemical products domesticallyand internationally, and Moritsune Co., Ltd., which is knowledgeable in the textile field from many years of dyeing andprocessing yarn in Hokuriku, one of the leading textile production areas in Japan. Although the product is 100% polyester, it has the texture and functionality of leather. In the future,
we aim to recycle fabrics after use and materials generated in
the cutting process and develop them into circular materials
that can be reused as new QUARTECH and used in a wide
range of fields such as apparel, furniture, and auto interiors, asa completely new environmentally-friendly fiber material.

* The Wood Design Award is an award system established by the Japan
Wood Design Association to recognize products and initiatives that
rediscover the qualities and value of wood from the consumer’s perspective.

Rice Husk Silica

Fabric samples

We have concluded an exclusive agency agreement inJapan with Brisil, an Indian company engaged in developing and producing biomass silica (rice husk silica), to provide highly dispersible biomass silica for tire and rubbercompounding to the Japanese market in a timely manner.
Biomass silica is an environmentally friendly product madefrom rice husks, which are agricultural waste. It is expected
to reduce CO2 emissions by up to 60%* compared to conventional silica made from sand. Despite being an environmentally friendly product, it has the same performance as
conventional products* and can replace conventional products without inconvenience. Another feature of Brisil’s proprietary technology is its ability to provide stable quality by
reducing variations in final product quality caused by theuse of natural raw materials. In addition to rubber applications, we are considering future expansion into paints, coatings, and oral care and cosmetics such as toothpaste.

Left: Silica (final product), Right: Ears of rice and rice husks as raw materials(concept)* Information from Brisil

Scenery of the Hokuriku region: Weaving a new future with local industry

48

Brisil Plant

49

Sanyo Trading Integrated Report 2023

Management Foundation
Resolving Social Issues through Business

Providing a Fulfilling Lifestyle“LiDAS™” System for Detecting Children Left Behind in Buses

Functional Feed Ingredients

Sanyo Trading is actively promoting automatic detection
safety devices to prevent children from being left in vehicles
due to human error. As part of this sensor promotion activity, we have introduced sensors to the Japanese market toprevent children from being left in vehicles for passenger
cars and buses from IEE (Luxembourg), a specialized sensor
manufacturer with a global market share. LiDAS™, a sensor
system for buses for detecting children left in the vehicle
developed by IEE, was certified as compliant with the“Guidelines for Safety Devices to Support the Prevention ofChildren from Being Left on School Buses” established by
the Ministry of Land, Infrastructure, Transport and Tourism in
May 2023. As a result, LiDAS™ is now also included on thelist of safety devices that help prevent children from being
left in school buses, published by the Children and Families
Agency, and is now officially eligible for subsidies for purchasing and installing the safety devices. We are actively
promoting the introduction of this child detection system tokindergartens and shuttle buses for nursing care facilities.

YPTECH Co., Ltd., one of Sanyo Trading’s subsidiaries, handles the products of Phileo, the animal care division of theLesaffre Group, the world’s largest yeast manufacturer. The
active yeast products offered by this company contribute toanimal health and nutritional management and supply safe
and secure food. Their flagship product, Actisaf (an active
yeast), awakens in the rumen of cattle and absorbs oxygenfrom the rumen, thereby stabilizing anaerobic conditions
conducive for microorganisms to survive. This function also
increases the activity of fiber-digesting and lactic acid-utilizing bacteria, producing volatile fatty acids (VFA), an essential source of energy for cows, which leads to increased
productivity, such as higher milk yield and milk fat.
In addition to food safety, Phileo also considers efforts toaddress the global environment one of its material issues
and has introduced Life Cycle Assessment (LCA). The aforementioned Actisaf is the first LCA product from Phileo. By
providing high-performance functional feed ingredientswith characteristics like those of Phileo’s products, the Sanyo
Trading Group will contribute to animal health-conscious
livestock production, productivity improvement and feed
cost reduction for producers, and safe and abundant foodfor people.

A LiDAS™ device installed in a bus

Food Additives and Functional Food Ingredients Initiatives
Through food additives and functional food ingredients, weare strengthening the following initiatives to contribute toproviding a fulfilling lifestyle.

Functional feed

Phileo (Lesaffre Group), France

Educational Support for High School Students through “Wagyu Koshien”• Strengthening the handling of naturally derived functional
agents to mask undesirable tastes in functional foodingredients and nutritional supplements in response toincreasing health consciousness and demand for foods
for older adults.
• Promote sales of functional agents that improve shelf life
to help reduce food loss and extend expiration dates.
•Strengthening the handling of alternative proteins toaddress environmental issues and food shortages, which
are global concerns as SDG-related issues.
 	Through the above efforts, we will continue to contributeto improving people’s health and QOL and realizing anenvironmentally responsive society.

FL Meal, an alternative protein (BSF powder)

Sanyo Trading and YPTECH Co., Ltd., one of our Group
companies, provided sponsorship and products to help
the 6th Wagyu Koshien organized by the Japan Agricultural
Cooperative Federation (JA Zen-Noh) to contribute to foodsafety and security (E: Environment) and education for highschool students (S: Society) as part of its ESG activities.
The Wagyu Koshien is a competition in which agricultural
high schools with animal husbandry courses present their
daily breeding activities and efforts and compete regarding
meat quality. The feed additive provided by YPTECH as adonation contributed to improving meat quality, an essential element of the competition. When mixed with the feed,vitamin C is smoothly absorbed in the small intestine andfurther along the digestive system, promoting the differentiation of fat cells.
In addition, some YPTECH representatives had graduated from agricultural high schools, so they were able toactively provide career counseling to these students. This initiative was a significant contribution to the local community.

At the 6th Wagyu Koshien

50

51

Sanyo Trading Integrated Report 2023

Management Foundation
Strengthening the Business Base that Supports Sustainable Growth

Active Participation of Diverse Motivated Human Resources
Sanyo Academy Overview

Message from the General Manager of the Human Resources & General Affairs Department
Since our founding, we have continued our business based on
the idea that “’People’ are the driving force behind the growthof a company.” Our human resources’ high level of expertise inproducts and services and their deep trust and ability to interact
with our customers are some of our biggest strengths. Amid anever-challenging business environment, including VUCA*, andchanges in the workforce, a breakthrough for the Company’s
further growth will come when our employees feel energized towork and continue their work for time to come. We began
reviewing our human resources and other systems several years
ago. In conjunction with the publication of SANYO VISION
2028, we have renewed our human capital-related initiatives
and approach. Once again, we have defined “employees” as
the source of the Company’s growth, defined the type of
people we are looking for as “self-motivated people who canalways take on challenges with integrity and provide the BEST
solution,” and clarified that the purpose of our human capital
measures is “all about providing the BEST solution to our customers.” The basic approach and philosophy of humanresources and organizational development is the Sanyo 3S
policy, which broadly views human resources issues as the “quality of human resources” x “quantity of human resources.” Sanyo
3S encompasses (1) Strategy: Approaches to both “humanresource quality” through human resource development andcareer autonomy and “human resource quantity” throughcareer recruitment, including new graduates, referrals, andcomeback hires; (2) System: Reform of the personnel system toshift from a seniority-based system to a fair evaluation andassignment system; and (3) Shared value: Fostering an “openand inclusive” organizational culture that allows for new proposals and challenges regardless of age or position. We fully understand that more than a few employees are perplexed by thetransition from the personnel system they have been accustomed to for many years to the new system, but we view it as an
essential milestone on the road to new growth. In addition to
Sanyo Academy, Sanyo Work Style, and other initiatives, we willcontinue implementing new systems and rules and reviewing
existing systems. We see all of these measures as necessary tocreate an environment and opportunities for growth, a systemthat allows diverse human resources to work in various ways.
This system will keep them healthy for a long time to come, withmeasures that will enable the employees to become attachedto the company. We will also
face the challenges of “quantity”
and “quality” in developing nextgeneration management personnel, an important issue forthe future.

Kumiko Wada
Human Resources &General Affairs Department,
General Manager* VUCA: A term coined from the first letters of four words: Volatility, Uncertainty, Complexity, and Ambiguity.

Sanyo Academy, a New Human Resources Development Initiative
Based on the idea that “’people’ are the driving force
behind the growth of a company regardless of the changing trends of the times,” efforts to strengthen human capitalwill be essential for the Company’s continued growth.
Therefore, we positioned 2023, when we announced our
new long-term management plan, SANYO VISION 2028, asa turning point for human resource development andlaunched a new initiative, Sanyo Academy. Sanyo Academy
is designed to develop self-motivated human resources
who are challengers who act with integrity and aim to findthe BEST solution. We will seek these types of humanresources through (1) On-the-job training (OJT) for new
graduates in each department, in which OJT leaders andmanagers are appointed within the assigned departments
to work on human resource development, (2) Off-the-job
training, including training by rank, selection, and age, and(3) Various programs such as support for qualificationacquisition, open recruitment, and career interviews. We
have also established the fiscal year ending September
2024 as the inaugural year of Sanyo Academy. We will continue to embody the idea that “Sanyo is a People Company”
by establishing and implementing various programs.

Our Human Resource Development Policy and our Ideal Candidate Profile (People we Seek)

Human Resource Development Policy

Sanyo Academy
OJT (On-the-Job Training)

OFF-JT (Off-the-Job Training)Self-Development Support

OJT system(organizational development system)

Training programs(by rank, choice, selection, age,and other factors)
Roundtable discussions /Post-training follow-up

Eligibility for promotion
Self-development support and­qualification acquisition support system

Career Development Support
Personnel assignment and promotion (selection and rotation)
Open recruitment system
Career interview system

Sanyo Work Style, a way of working unique to Sanyo Trading
Sanyo Trading has launched the Sanyo Work Style. This newwork style will pave the way to energized and lively activities
and do-it-yourself vitality as a new work system in response to
the shift of the status of COVID-19 from a Category 2 to Category 5 under the Infectious Disease Act, effective May 8, 2023.
Sanyo Work Style is a system that ensures diversity inworking hours and choice of work location, with the mottoof building an environment unique to Sanyo Trading where

employees can work openly and inclusively while observing
moral rules and being fully aware of their self-discipline. In
the fiscal year ended September 2023, as the first phase of
the initiative, we recommended staggered working hours
and remote working twice a week as a general rule, and weplan to establish and implement new systems in the future
based on the “open and inclusive” corporate culture that
Sanyo Trading has adopted.

D&I Promotion Committee
Sanyo Trading regularly holds D&I Promotion Committee
meetings to create a comfortable work environment andframework to foster a corporate culture where diverse
human resources can play an active role. With the two goalsof “making opinions and proposals for advancing andestablishing D&I into systems and rules” and “creating
SANYO-style D&I,” we are involved in everything fromselecting themes and generating ideas to conducting surveys and examining systems and measures.
For the fiscal year ended September 2023, we proposed
two systems and measures to management for approval:
an incentive program to encourage employees to takechildcare leave and an action plan to improve unconscious
bias. We will continue to strengthen these efforts.

Aiming to embody the idea that “Sanyo is a people company,”
we will foster employees who are self-motivated and energized to work

Ideal Candidate Profile (People We Seek)
Self-motivated people who can be a challenger and provide the BEST solution
while acting with integrity

52

53

Sanyo Trading Integrated Report 2023

Management Foundation
Strengthening the Business Base that Supports Sustainable Growth

Active Participation of Diverse Motivated Human Resources

Promoting Health and Productivity Management
Sanyo Trading is focusing on promoting health management based on human capital in the basic strategy of “corporate
management” outlined in SANYO VISION 2028.
E nhancement of work-life balance for employees and their families and support for employee wellness
Reinforcement of health management system to avoid the risk of losing orders, based on the fact that in commercial
transactions, the establishment of an employee occupational health and safety management system is a standard condition of contracts with our business partners
Improvement of employee productivity and contribution to corporate performance
Health and Productivity Management Declaration and Health Promotion System
At Sanyo Trading, we believe that the mental and physical
Sanyo Trading regards health and productivity managehealth of each employee is important. With employees inment as part of ESG’s social (S) dimension, which encomgood health both physically and mentally and strongly motipasses human resource management. To promote relevant
vated to generate new value, we contribute to providing a
initiatives, we additionally established the Health and Profulfilling lifestyle by working to source products and ensureductivity Management Promotion Committee in December
their stable supply. Based on this approach, we issued the2022 as a subcommittee of the Sustainability Committee.
Sanyo Trading Health and Productivity Management DeclaThe committee is an organ separate from the pre-existingration in December 2022. This declaration will form the basis
Health and Safety Committee.
for our implementation of health and productivity management initiatives toward strengthening the corporate base.

Introducing a Volunteer Participation Support System to Encourage Employees toContribute to Society
As part of “society” (social contribution and human resources
development) components of its ESG activities, Sanyo Trading has introduced a volunteer participation support system
to realize each employee’s desire to contribute to society,stimulating internal communication and fostering diversity
awareness. In an in-house survey on volunteer activities conducted in April 2022, approximately 70% of employees wereinterested in participating. Still, some said that it was difficult
to participate on their days off, that there were not many
great opportunities to volunteer, or that they did not know
how to get involved. To respond to each employee’s highlevel of willingness to contribute to society, we have decided
to make this into a new system. We have introduced a volunteer information service as a way to give employees more
opportunities and show them how they can get involved.
We have also established a volunteer leave system for those
who expressed it would be difficult to participate on theirdays off. We provide information on volunteer activities every

month to make it easier for employees to participate in volunteer activities.

Portal site established in conjunction with the introduction of the volunteer
participation support system

Board of Directors

Sanyo Trading Health and Productivity Management
Declaration
Enhancing the Workplace Environment	Sanyo Trading will put in place a safe, secure, and healthy
workplace environment where employees feel energizedin their work.
Promoting Health Awareness	Sanyo Trading will support a wide range of health initiatives
to raise employee awareness of physical and mental health.
Responsibility Toward the Future	Sanyo Trading will work to maintain and improve employee
health as a way of raising organizational productivity andthereby achieving sustainable business growth.

54

Employee Engagement Survey

Report to
President &CEO

Sustainability
Committee

Health and Productivity Management
Promotion Committee• Committee composition
Chairperson:	General manager of Human Resources & General
Affairs Department
Committee members:	Head Office industrial physician, Head Office
Nagoya Branch health and safety management
officers, Osaka Branch and Hiroshima Office
health and safety promotion officers• Secretariat:	Human Resources & General Affairs Department Committee operation
The committee is convened by the chairperson and meets every six
months (April and October).
The chairperson reports the items discussed by the Health andProductivity Management Promotion Committee to the Board of
Directors through the Sustainability Committee.

Sanyo Trading believes that the relationship between employees and a company, in which employees are chosen andselected, is an essential form of success in a changing market
environment. Therefore, to understand the relationshipbetween the two parties, we have decided to conduct anengagement survey every fiscal year beginning in the fiscal year
ended September 2023, using the survey items listed on theright as indicators. The survey results are shared with the management team, and improvement measures are considered formaterial issues as appropriate. We will continue to use engagement surveys to foster a quality corporate culture, aiming to
make the Company a great place for employees to work.

Survey item
1. Management’s goals and direction
2. Immediate supervisors
3. Work (duties)
4. Communication in the workplace
5. Skill building
6. Work environment and benefits
7. Personnel system, etc.

55

Sanyo Trading Integrated Report 2023

Management Foundation
Strengthening the Business Base that Supports Sustainable Growth

Reinforcing Solid Management Structure (Corporate Governance)

Basic Approach to Corporate GovernanceAppointment and Dismissal of Directors

Sanyo Trading has defined its MISSION as “We foster an
open, down-to-earth, and entrepreneurial corporate culturethat drives our collective efforts to deliver the best solutions
flexibly and timely so that we can help achieve the sustainable
development of the global community and fulfill employees’
aspirations for well-being.” We believe that ­fulfilling this
­MISSION will meet the expectations of all our stakeholders.

To that end, our Credo states: “We comply with laws andregulations and act with integrity,” “We make decisions andact on them quickly and accurately,” and “We understandthe trends of the times and anticipate change.” By following
these aspects of this Credo, we aim to reinforce our corporate governance system.

Corporate Governance Structure
General Meeting of Shareholders
ReportNomination andCompensation Committee

Deliberation,offering opinion

Appointment, dismissal

Board of Directors

ReportAuditing,supervision

Consultation

Submission andReportAudit and Supervisory
Committee

Auditing

Appointment,
dismissal

Appointment, dismissal

When appointing an executive officer or a director, the President & CEO creates an appointment plan that takes into
consideration (in terms of diversity, etc.) the Board of Directors, qualities required of executive officers and directors(e.g., management ability, experience, and expert knowledge) and other factors. The plan is deliberated by the
Nomination and Compensation Committee, the majorityof whom are independent outside directors. Following thecommittee’s deliberations, the Board of Directors makes adecision on the proposed appointment of an executive
officer or director in accordance with the appointment plan.

Skills Matrix

Cooperation

Accounting Auditor

Cooperation
Cooperation

Corporate
management

Name

President & CEO

Risk Management Committee

Accounting
audit

Sustainability Committee
Appointment,
dismissal, supervision

Executive Ofﬁcers

Investment and Loan Committee
Internal Audit Section

Internal directors
Supervision

Outside directors
Executive ofﬁcers

Business Divisions andAdministrative Divisions

Name

56

Overview

Board of Directors

14

Audit and Supervisory
Committee

Audits and supervises the legal compliance and adequacy of the execution of duties of directors(excluding Audit and Supervisory Committee members).

15

Nomination andCompensation
Committee

Works to enhance the independence, objectivity, and accountability of the functions of the Board of
Directors with regard to the appointment and dismissal of the President & CEO and directors withspecial titles, the nomination of director candidates, and the remuneration of directors (excluding Audit
and Supervisory Committee members).

1

Committee of
Executive Officers

Shares information and strives to improve day-to-day business execution in the respective areas of
responsibility.

12

Finance /Accounting

Main reason for appointment

Toshiaki
Mizusawa

Mr. Toshiaki Mizusawa has gained extensive insight through his practicalexperience at a financial institution and at overseas offices, and is wellversed in internal affairs due to his experience as General Manager of theCredit and Legal Department and General Manager of the Personnel Division of the Company. The Company appointed him to play the role ofpushing ahead with business and administration of the entire Group.

KenichiShindoMr. Kenichi Shindo has been involved in sales for many years and has abundant experience at an overseas office in North America. The Company
appointed him to play the role of pushing ahead with business and salesof the entire Group from a global perspective.

Mitsuyasu
Hirasawa

Mr. Mitsuyasu Hirasawa has been involved in sales for many years and hasabundant experience at an overseas office in North America and a background in promoting company-wide new business development. The
Company appointed him to play the role of pushing ahead with businessand sales of the entire Group from a global perspective.

Hirotaka
Sugihara

OutsideMr. Hirotaka Sugihara has gained a wealth of experience and knowledge
by working at a trading company for many years, and has abundant experience of corporate management and organizational operations as a corporate manager. The Company appointed him upon consideration that hecan continue to help improve the corporate value of the Company from an
independent standpoint.

MitsuoOgawa

OutsideMr. Mitsuo Ogawa has gained a high level of insight cultivated throughhuman resources and organizational consulting experience for many
years, and has abundant experience of corporate management and organizational operations as a corporate manager. The Company appointed
him upon consideration that he could continue to help improve the corporate value of the Company from an independent standpoint.

No. of meetings(Fiscal year ended
September 2023)

Makes decisions on important matters relating to Group management and audits and supervises
business execution. The term of office is one year for directors who are not Audit and Supervisory
Committee members and two years for those who are Audit and Supervisory Committee members.

Legal affairs /International
experience Risk management

Mr. Masanobu Shintani has been involved in sales and planning for many
years and has abundant experience at overseas offices, including those in
North America and Asia. The Company appointed him to play the role ofpushing ahead with business and management of the entire Group froma global perspective.

Auditing

Major Governance Bodies

ESG /Sustainability

Masanobu
ShintaniCompliance Committee
Selection, dismissal,
supervision

In the event that an executive officer or a director has committed a potentially dishonest or improper act or is deemed
not to be able to perform the responsibilities of his or herrole, an investigation is conducted as necessary. Following
deliberation by the Nomination and Compensation Committee, the Board of Directors makes a decision on the dismissalof the executive officer or director, or other response.
For remuneration of directors (excluding Audit andSupervisory Committee members) and directors who are
Audit and Supervisory members, please refer to Corporate
Officer Remuneration on the following page.

Audit andSupervisory
Committee
MemberMr. Hiroshi Shirai is well versed in the Company’s internal affairs due to his
experience as Director, in charge of Administration Divisions. The Company appointed him upon consideration that he can properly carry out theduties as a Director concurrently serving as an Audit and Supervisory Committee Member.

Asako
Hasegawa

Audit andSupervisory OutCommittee side
Member

Ms. Asako Hasegawa has never been involved directly in corporate management, but she is well-versed in financial accounting and tax affairs as acertified public accountant. The Company appointed her upon consideration that she can continue to properly carry out the duties as an Outside
Director, concurrently serving as an Audit and Supervisory Committee
Member by supervising and auditing management of the Company
based on her insight and experience.

Kuniaki
Kobayashi

Audit andSupervisory OutCommittee side
MemberMr. Kuniaki Kobayashi has never been involved directly in corporate management except as an Outside Director, but he is well-versed in corporate
legal affairs as a lawyer. The Company appointed him upon considerationthat he can continue to properly carry out the duties as an Outside Director, concurrently serving as an Audit and Supervisory Committee Member
by supervising and auditing management of the Company based on his
insight and experience.

KiitsuSugitaSubstitute
Audit and
OutSupervisoryside
Committee
MemberMr. Kiitsu Sugita has never been involved directly in corporate management, but he is well versed in tax affairs as a certified public tax accountant.
The Company has appointed him upon consideration that he can properly
carry out the duties as an Outside Director concurrently serving as an Audit
and Supervisory Committee Member by supervising and auditing themanagement of the Company based on his insight and experience.

HiroshiShirai57

Sanyo Trading Integrated Report 2023

Management Foundation
Strengthening the Business Base that Supports Sustainable Growth

Reinforcing Solid Management Structure (Corporate Governance)
Reasons for Selecting Skill Matrix Items
Corporate management
To realize our VISION, “Deliver tangible solutions to social
issues to make the world a better place for everyone,” wehave set “Strengthening the earnings base” and “corporate
management” as key measures in our new long-term management plan, SANYO VISION 2028.
In promoting these measures and ensuring the future
growth of our Company, we need the knowledge, experience, and abilities of those responsible for domestic andinternational corporate management and organizational
operations who make critical business decisions amid a rapidly changing and uncertain business environment.
For this reason, it is necessary that the Company’s directors include persons with top management or equivalentexperience within the Group.
ESG / Sustainability
Knowledge and experience in ESG and sustainability arenecessary for us to meet our stakeholders’ expectations andwork toward realizing a sustainable society, including
addressing climate change issues.
For this reason, we believe it is necessary that the Company’s directors include persons who have knowledge of
ESG and sustainability in corporate management.
International experience
The growth of our international business is essential to realize
the “sustainable development of the international community,”

Total remuneration, etc. (Fiscal year ended September 2023)

which is a part of our Mission. To formulate growth strategies
for international business, directors of the Company must
include persons who know internationality, as we believe thatexperience in overseas business management and knowledgeof overseas business environments, different cultures, andcountry risks, including geopolitical risks, is necessary.
Legal affairs / Risk management
Our broad, global operations involve various risks affecting
our performance and financial condition.
To address these risks appropriately, we believe an appropriate governance structure as a foundation for sustainablecorporate value enhancement is necessary.
For this reason, we believe it is necessary for the Company’s directors to include persons who have knowledge
and experience in legal and risk management, as well as
solid knowledge and experience in corporate governance,risk management, and compliance.
 inance / AccountingF
To sustainably increase our corporate value, we believe it isnecessary to build a strong financial base, accurately reportfinancial results, and develop a financial strategy that will
promote investment in growth and M&A and enhanceshareholder returns.
For this reason, it is necessary for directors of the Company to include persons who have knowledge and experience in finance and accounting.

Corporate Officer Remuneration
With regard to remuneration for directors (excluding Audit
and Supervisory Committee members), the Company has
formulated a remuneration system that closely aligns with
the interests of shareholders and effectively incentivizes
directors to continuously improve corporate value. The
basic policy when determining remuneration for each director is to set remuneration at a level that reflects the responsibilities of the position.
Remuneration for directors (excluding Audit and Supervisory Committee members) consists of fixed remuneration(monetary remuneration) as basic compensation, performance-linked remuneration, and stock compensation as

non-monetary remuneration. Outside directors, who have asupervisory function, are paid only fixed remuneration(monetary remuneration) in light of their duties.
To enhance objectivity and transparency when determining remuneration for directors, the Nomination and Compensation Committee, the majority of whom are outside
directors, discusses approaches and the policy for determining remuneration of corporate officers, as well as remuneration levels, after which the Board of Directors determines
remuneration based on the advice and suggestions of thecommittee.

Composition of Corporate Officer Remuneration
President

Other directors(excluding Audit and Supervisory
Committee members)

58

Fixed remuneration (monetary remuneration)

55%

Performance-linked remuneration

35%

Non-monetary remuneration
Fixed remuneration (monetary remuneration)

65%

Performance-linked remuneration25%

Non-monetary remuneration

Other directors(Audit and Supervisory Committee members)(excluding outside directors)

Fixed remuneration (monetary remuneration)

Outside directors

Fixed remuneration (monetary remuneration)

100%
100%

10%
10%

Total of each type of remuneration, etc. (Thousands of yen)

Position

Total remuneration,
etc.
(Thousands of yen)Fixed
remuneration

Performance-linked
remuneration, etc.

Non-monetary
remuneration, etc.

Directors (excluding Audit andSupervisory Committee members)(excluding outside directors)

235,000

136,000

83,00016,0006

Directors (Audit and Supervisory
Committee members) (excluding
outside directors)

14,00014,000——1

Outside corporate officers

24,00024,000——5

Policy for determining remuneration, etc., for each director(excluding Audit and Supervisory Committee members)

The policy for determining remuneration, etc., for eachdirector (excluding Audit and Supervisory Committee members) is decided on at the Board of Directors meeting.

Fixed remuneration (monetary remuneration)

Basic remuneration for directors (excluding Audit andSupervisory Committee members) consists of monthly
fixed remuneration, which is the total of the salary as a company representative, supervisor, and/or executive officer.
The same amount is paid for each equivalent position. Basic
remuneration is determined taking into account remuneration levels at other companies and employee salary levels,among other factors, while also comprehensively considering changes in the economic and social environment, etc.
Performance-linked remuneration
Performance-linked remuneration consists of monetary
remuneration that reflects the business performance of theCompany, in order to incentivize directors to improve business performance each fiscal year. Consolidated ordinary
income is used as the index of business performance,
because it is used as a performance target when deciding
internal budgets, and is also considered to be the easiest
index for understanding the management status of theGroup. Performance-linked remuneration is paid as a bonus
at the end of each fiscal year and is calculated based on the
consolidated ordinary income that fiscal year.
Performance-linked remuneration is calculated by multiplying the base amount of bonus determined for eachposition by the performance-linked coefficient, which consists of the percentage of achievement against the businesstarget (consolidated ordinary income) for the current fiscal
year. The coefficient for performance-linked remuneration iscapped at 150%, and is set at 0% if consolidated ordinary
income is below a certain threshold.
In addition, the method of reflecting performance evaluation in the remuneration amount is as follows: for the president, 100% of performance-linked remuneration shallreflect company performance; for other directors, 80% of
performance-linked remuneration shall reflect company
performance and 20% on qualitative evaluation, with thequalitative portion determined by the president.

Eligible ­corporate
officers

Non-monetary remuneration
Non-monetary remuneration consists of a restricted stock
remuneration plan, which is issued to registered directors(excluding outside directors and Audit and Supervisory Committee members) every February with comprehensive consideration of the position, degree of contribution, and businessperformance (consolidated ordinary income) that fiscal year.

Remuneration of directors (excluding Audit andSupervisory Committee members)
Total amount of monetary remuneration (fixed remuneration andperformance-linked remuneration) for directors (excluding Audit andSupervisory Committee members)
Annual total of no more than 250 million yen (to include an annual totalof no more than 20 million yen for outside directors)
Note: As resolved at the 73rd Ordinary General Meeting of Shareholders,
held on December 19, 2019.
Restricted stock compensation plan
Annual total of no more than 20 million yen
Note: As resolved at the 76th General Meeting of Shareholders, held on
December 22, 2022.
Note: The number of eligible directors (excluding Audit and Supervisory
Committee members) at the time of the respective resolutions was
six (including one outside director) at the 73rd meeting and four atthe 76th.

Reasoning why the Board of Directors deems the content of remuneration, etc., for each individual to be inline with the policy
Given that the Nomination and Compensation Committee
reports its conclusions after checking consistency, etc.,
between the content of remuneration, etc., for each director
and the policy for determining remuneration, and that theBoard of Directors basically respects the committee’s report,
the Board of Directors deems the content of remuneration,etc., for individual directors to be in line with the policy.

Remuneration for directors who are also Audit andSupervisory Committee members
Remuneration for directors who are also Audit and Supervisory Committee members
Total of no more than 40 million yen (determined within this range bydiscussion among directors who are also Audit and Supervisory Committee members)
Note: As resolved at the 69th General Meeting of Shareholders, held on
December 17, 2015.
Note: The number of eligible directors also serving as Audit and ­Supervisory
Committee members at the time of the resolution was three.

59

Sanyo Trading Integrated Report 2023

Management Foundation
Strengthening the Business Base that Supports Sustainable Growth

Reinforcing Solid Management Structure (Corporate Governance)

Compliance
The Company has formulated the Sanyo Trading Group
Code of Conduct Manual, which specifies how officers andemployees of the Company and its Group companies
should act to ensure their actions are in accordance with theManagement Mission, and in compliance with laws andregulations as well as the Articles of Incorporation. To ensure
the effectiveness of the manual, the president appoints a
director in charge of compliance, and the Company has
additionally established a Compliance Committee according to its compliance regulations, thus putting in place asystem to coordinate legal compliance initiatives Groupwide. The status of activities is reported regularly to theBoard of Directors. Group companies make periodic
reports to the Board of Directors and relevant supervising
division based on the Group Company Management Regulations, Authorization Authority Standards, and other rules.
A system is in place by which Group companies are able to

Evaluating the Effectiveness of the Board of Directors
report their status regularly through participation in meetings of the Committee of Executive Officers. In addition,
the Company ensures compliance with laws and regulations by having the Company’s Board of Directors makedecisions on certain matters as stipulated in the regulations.
The Internal Audit Section audits the business activities of
the Company and Group companies to ensure that they
are operated efficiently per laws, regulations, internal rules,
and general business practices. It reports its findings to theBoard of Directors. The Company has established and continues to operate whistleblower hotlines, whereby acts that
violate or risk violating laws and regulations or social norms
can be reported internally to the Human Resources & General Affairs Department and externally to a third party (attorney). Internal regulations have been established to protect
reporters from receiving unfair treatment.

Risk Management
The Company takes all reasonable steps to identify a variety
of risks that arise in business execution by applying consistent standards and implements comprehensive risk management to ensure sound management and maximize
shareholder value. Specifically, in accordance with our Risk
Management Regulations, the Company ensures the clarityof its risk management system by specifying the divisions
responsible for different types of risks and managing risks
exhaustively and comprehensively. The president appoints
a director in charge of risk management, and the Risk Management Committee has been established so as to comprehensively monitor various risks intrinsic to the Company’s
operations and risks that the Company should avoid, ensuring business continuity, and promptly responds to changes
in the risk landscape. The committee regularly reports to theBoard of Directors with risk management overviews,

60

including countermeasures for when a risk that should be
avoided manifests. To appropriately allocate authority andexecute duties following business risks, we have established
an internal approval and decision-making system based on
the “Regulations on Administrative Authority.” Investment
and Loan Committee deliberates on major investment projects from the perspectives of profitability, strategy, safety,
feasibility, compliance, etc., before submitting them to theBoard of Directors. It evaluates both qualitative and quantitative risks associated with investments and loans to reduceand avoid such risks. For Group companies, a system to preempt losses has been put in place under the Risk Management Regulations based on interviews with therepresentative directors of the Group companies and otherrelevant personnel as required.

The Company conducted a questionnaire survey to assess
the effectiveness of the Board of Directors.
As a result of the evaluation, we confirmed that there areno particular problems in the following areas: there is asystem in place for making critical management decisions
and for auditing and supervising business execution
appropriately; the Board of Directors, including outside
directors (including Audit and Supervisory Committee
members), freely and openly exchange opinions; there arevarious training opportunities for directors, there is communication among directors, and directors are cooperating with the Audit and Supervisory Committee. To makethe Board of Directors more effective in the future, we willcontinue to consider and improve efforts to strengthen
monitoring of investment targets (businesses) and enhance
disclosure information.

Target group

MethodQuestionnaire
items

10 Directors (including 4 outside directors (ofthose, including 2 Audit and Supervisory
Committee members))
Anonymous questionnaire
Multiple choice questions and free entry(1) Composition of the Board of Directors(2) Operation of the Board of Directors(3) Effectiveness regarding overall management

Supply Chain Management
We import and export niche high-value-added commercial products, including automotive interior components,
fine chemicals, and various other materials and raw materials, to North America, Europe, China, Southeast Asia, andother regions.
If extreme weather conditions intensify and supply chainsare disrupted in the future, warehousing and international
freight charges may increase as shipments are delayed.
Therefore, we have conducted wind and flood damage
risk surveys, etc., for external warehouses and sales offices,to which we have outsourced the storage and distributionof commercial products since 2020 and raked each officeaccording to the results of these surveys. For warehouses
and bases with a medium to high risk rating, the Business
Unit in charge of the warehouse or office has a system todiscuss BCP and emergency preparedness with the relevant Business Unit or Group company in charge of thewarehouse or office at normal times. Only companies thathave prepared a BCP are permitted to use new warehouses
and sales offices after checking the hazard map of the relevant location for risks.
In addition, from 2022, we have introduced SECOM
Safety Confirmation SCM, a disaster support service for ourwarehouses and sales offices, to immediately report thestatus of damage to our products caused by earthquakes,
windstorms, and flooding, as well as the expected return tonormal operations. This enables us to grasp the disasterconditions and the expected start date of shipping operations, and we will promptly fulfill our responsibility to supply
customers according to each situation.

Declaration of Partnership Building
In December 2023, we announced our “Declaration of Partnership Building,” intending to further increase collaboration
among our supply chain and stakeholders. The Declarationof Partnership Building is an initiative established in May 2020
by the Conference on Promoting Partnership Building for the
Future, whose members include the Chairperson of Keidanren, the President of JCCI, the President of JUTC-RENGO,
and relevant ministers, to build a sustainable relationshipwhere large corporations and small and medium-sized enterprises can grow together. This is a declaration in the name of
the representative of companies, from the standpoint of theordering party, to build new partnerships by promoting
cooperation and coexistence with business partners in the
supply chain and value-creating businesses. We will continue

to deepen our partnerships with suppliers and value-creating
businesses in the supply chain and strive for coexistence andco-prosperity throughout the supply chain and mutual valueadded enhancement.

61

Sanyo Trading Integrated Report 2023

Management Foundation
Strengthening the Business Base that Supports Sustainable GrowthRoundtable Discussion with Outside Directors

Kuniaki Kobayashi
Outside Director
Audit and Supervisory
Committee Member

Asako Hasegawa
Outside Director
Audit and Supervisory
Committee Member

Hirotaka Sugihara
Outside Director

Mitsuo Ogawa
Outside Director

Sanyo Trading’s Corporate Governance
Kobayashi Even in rapidly changing operating conditions,
it is important to maintain the same solid and reliable governance checks as before without being dragged down by
this change. However, if internal procedures become overly
complex, which impairs the speed of management decisions, it may become difficult to respond to environmental
changes, making it difficult to compete. While the emphasis
is on agile management decisions, it is essential to ensurethat the procedures set up by the Company are followed
and that the governance structure is rigorously maintained.
Based on the “bad news first” philosophy, our Board of
Directors meetings provide an atmosphere where directors
can speak freely and engage in lively discussions. Particularly
for complex matters such as new investments and M&A
projects, preliminary briefings are held for outside directors
to help them understand the situation. The composition ofoutside directors is also diverse, with members of different
origins and attributes. After the appropriateness of matters62

pointed out by outside directors is reexamined by the executive members, the Board of Directors is informed of the
progress in addressing the issue. This ensures that the Boardof Directors makes effective decisions and takes action.
On the other hand, developing auditing personnel isnecessary to respond to the increasing complexity of Group
governance as the number of overseas bases and Group
companies increases. In particular, it would seem necessary
to assign dedicated auditors to major Group companies
and to increase the staffing of the Internal Audit Section
within the Company itself. Such an assignment of auditors
will require a policy of establishing an appropriate auditing
system and strengthening the governance Group-wide.
Hasegawa We believe that the Company’s top management is in charge of the entire Group with strong leadership, and each corporate officer is performing their
responsibilities well, resulting in sustainable businessgrowth. Under these business conditions, we assess thatthe Board of Directors is functioning effectively, focusing on
monitoring to support the Company’s stable growth andincrease in corporate value.
In the past, the top management and directors in charge
often answered questions. Recently, however, the executive
officers in charge have been more frequently present, adding
depth to the discussions. Sanyo Trading’s executive management has taken the posture of accepting outside opinions
sincerely without rejection, even if they may be painful tohear as executive members, which is a great strength fromthe perspective of governance. I believe that the effectiveness of our governance has certainly improved.
We have achieved steady growth based on our strengths:
high-value-added products in niche fields, highly specialized
human resources, and a solid financial base. While we continue to build on this solid foundation to achieve sustainablegrowth, the external environment is changing rapidly as wehead into an era where past successes are no longer valid.
Future prospects are unclear—further requiring new ideas
and business models. Decision-making under these circumstances requires a greater sense of mobility and speed thanever before and decisions that are not bound by precedent.
Similarly, the governance of the Group will require a moresophisticated, globally competitive structure. We believe that
our challenge is to evolve these aspects of our business further to achieve sustainable growth in the future.
Ogawa The Company’s governance evolution is closely
tied to human capital management. The cornerstone of theCompany’s growth is the people, and strengthening humancapital is a central issue and top priority.
With the implementation of the new long-term management plan, SANYO VISION 2028, the strengthening of
human capital must also be considered in conjunction withthis plan. We must envision the ideal organization five years

from now and build an optimal human resource portfolio toachieve this goal. The Company is also working on thisinitiative.
We introduced a new system called the Sanyo Academy(see Page 52) as a specific initiative. This is a great challenge
for the Company—a reform to its existing human resource
development system. Strengthening human capital necessitates aiming for results by combining various mechanisms,
including training systems, personnel assignment, evaluation methods, and career development. The Sanyo Academy combines these systems closely linked to SANYOVISION 2028.

A New Long-term Management Plan: SANYO VISION 2028
Ogawa SANYO VISION 2028 is unique. Unlike generalbusiness plans, it is not a simple compilation of plans foreach business, given the wide range of business fields inwhich we operate. The unique offerings of SANYO VISION
2028 are extremely valuable.
First, the formulation process for our management planis with the Company’s typical method of creating a common
knowledge base. Discussions that initially started with few
members gradually involved many personnel. With ourbusiness portfolio strategy, the corporate officers and eachbusiness unit engaged in outspoken discussions, which led
to a thoughtful consideration of the state of the businessportfolio. I feel that the plan developed through these accumulations is very sophisticated.
More importantly, SANYO VISION 2028 does not merely
indicate the company’s future direction but also considers
how it can be aligned with every employee’s work style andcareer development. Aligning the Company’s direction
with that of its employees is in line with the demands of thetimes, and we hope that our employees will ascertain theirdirection and path to growth with SANYO VISION 2028.
Sugihara I was also surprised by the formulation process.
Mr. Ogawa and I attended individual meetings with President
Shintani, management, and each business unit, where we

had detailed and meaningful discussions. Furthermore, I
have never seen such an open and transparent process of
disclosing the plan’s framework to all employees when it iscompleted, soliciting their opinions, and then announcing
them to all employees.
The plan is also unique in having an excellent new Mission, Vision, and Values. First of all, Sanyo Trading’s Mission
explains, “We foster an open, down-to-earth, and entrepreneurial corporate culture that drives our collective efforts todeliver the best solutions flexibly and timely so that we canhelp achieve the sustainable development of the global
community and fulfill employees’ aspirations for wellbeing.” This is the first time I have encountered a Company
that has such a clear vision that states the reason for theCompany’s existence. This is possible because of our superior business model. Our unique business model as a technical trading company, built through years of hard work, still
maintains a high profit margin, and is based on our philosophy of pursuing “good work” that contributes to the international community.
The happiness of employees is also clearly shown to be
most important, not only in terms of salary and benefits but
also in terms of job satisfaction and joy. The belief that providing an environment in which employees can engage in63

Sanyo Trading Integrated Report 2023

Management Foundation
Strengthening the Business Base that Supports Sustainable GrowthRoundtable Discussion with Outside Directors
their work with a sense of fulfillment daily will lead toincreased shareholder value is an excellent one, and it is thefoundation of SANYO VISION 2028.
To achieve our plans, our focus is on strengthening thefour revenue bases: the Growth of existing businesses, theDeveloping new businesses, the Strengthening consolidated management structure, and Advancing investment
projects. To this end, it is important for the management not
to drop these goals midway, and it is important for employees not to give up until the end—to be willing to accomplish
the plan. By not giving up, various kinds of wisdom will
spring forth. With any luck, we will combine our wisdom andefforts, persevere, never give up, and achieve our goals.
Hasegawa The previous long-term management plan had
several unachievable goals due in part to the COVID-19
pandemic. SANYO VISION 2028 is an improved and evolved
version of the plan that reigns all of these plans in. Many
employees were involved in the development process of thisplan over an extended period, resulting in a business planthat was highly satisfactory to employees.
In SANYO VISION 2028, our vision is to “Deliver tangible
solutions to social issues to make the world a better place foreveryone.” We believe that this will meet the demand for sustainability from the market and our shareholders and investors.
I believe the Company is tackling the issue head-on bycontributing to protecting the environment by providing

commercial products and services, including environmentally friendly products and our woody biomass power generation operation, and by making these businesses profitableto realize its goals and increase its corporate value. I hope to
see these efforts continue.
Kobayashi Regarding business portfolio strategy, the Corporate Governance Code also states that effective supervision is required to ensure that implementing strategies
regarding the business portfolio contributes to the Company’s sustainable growth and that the review of the business portfolio should be explained to shareholders in a
logical and easy-to-understand manner. In particular, theinvolvement and oversight of the Board of Directors is
becoming increasingly important. SANYO VISION 2028
indicates a shift from core businesses to growth businesses,
and it is important that this transition proceeds smoothly.
On the other hand, adherence to achieving targets may
cause difficulties in rapidly changing operating conditions.
As Audit and Supervisory Committee members, we must
confirm whether the Company is prepared to respond tochanges flexibly to avoid unnecessary risks caused by excessive focus on achieving the plan. Flexibility and adaptability inplanning are essential in dealing with fluctuating market andindustry conditions. In risk management, the appropriate balance must be maintained to ensure a smooth execution of
the strategy.

Strengthening Human Capital
Ogawa It was mentioned that realizing the four policies ofstrengthening the earnings base in SANYO VISION 2028 is thegreatest focus for achieving our goals, and I completely agree.
In this context, I expect the policies be implemented based on
the “Corporate management” theme of “­Corporate culture:­Elevation of positive corporate culture into an inimitable­competitive advantage to pass on to the next generation.”
Recognizing that our strength lies in our open and inclusive corporate culture is especially important. This culture isessential to our growth and a source of competitive advantage based on our unique knowledge and experience.
It is not easy to build an open and inclusive culture, anda culture that accepts and tolerates failure is essential. An
open and inclusive culture cannot be sustained without an64

attitude of learning from mistakes. It is wonderful that theCompany is proactively working to eliminate the barriers
between internal and outside directors, create a free discussion climate, and have its corporate officers declare their own
open and inclusive values. As this culture permeates theentire organization, it will foster flexible and creative thinking
that will be passed on to the next generation.
We are also a company that values Challenging ourselves for the BEST solution. The BEST solution is to findand propose an answer the customer is unaware of, which
requires a “discerning eye.” This is another characteristic of
the Company that should be formalized into formal knowledge and incorporated into the foundation of humanresource development in the future. Our employees willgrow by acquiring a “discerning eye.” As they do so, they willcontribute to the development of the Company as a whole,creating a virtuous cycle that will create sustainable value aspart of our organizational culture.
Kobayashi Many of our employees have high goals andenjoy working for the Company. I find it encouraging to see
young employees working with high-reaching goals.
On the other hand, the lack of women managers is an
issue. While this needs to be addressed as soon as possible,

simply promoting women because they are women is not a
substantial approach. We need substantive diversity, nottrait gender differences, and promoting diversity must be
done while carefully considering our situation.
Sugihara One of our visions is: “Sanyo is a people company,” and we have a consistent philosophy that the happiness of our employees leads to the growth of the Company,
which in turn leads to shareholder profit. To realize President Shintani’s words, “A company where employees canwork with a smile,” I hope that the Company will provide arewarding work environment where employees can experience growth and be active in a lively and exciting way. To
this end, I expect that the new personnel system and initiative, Sanyo Academy, will provide many opportunities and astage for our employees in the future.
More than half of our employees are mid-career hireswith diverse knowledge. It is wonderful to see the integrationof career Sanyo employees and mid-career employees.
Also, more than half of our sales employees have a sciencebackground, which is rare among trading companies, which
contributes to our technical strength in sales. We are alreadya company with such a diverse workforce, and I hope that in
the future, we will go even further in our efforts to recruit andtrain talented people regardless of gender or nationality.

Role of Outside Directors
Hasegawa The role of an outside director is to view, question, and uncover risks from a different perspective than thehomogeneous viewpoint from within the Company. As acertified public accountant, I have been involved in auditing
and accounting for many years. I would like to contribute toimproving the Company’s corporate value by providing
professional advice and reflecting on the knowledge gained
from my experience working for a trading company as oneof my diverse viewpoints in management decision-making.
I believe that creating an organization in which diverse
human resources can play an active role is essential for a company’s sustainable growth. The Board of Directors also discusses various ways to further promote diversity management.
Even if we look at a single data point of women’s participation, the percentage of women in management positions has
not gone up, although there are many talented and motivated women in the organization. It is a difficult topic toimprove overnight, but I see it as one of my roles as an outside director to prepare a place where more women can play
an active role in positions of responsibility.
Ogawa The role of outside directors is to have the “bystander’s vantage point,” or to boldly point out, from an objective
perspective, issues and ideas that lack an internal perspective or are overlooked in a homogeneous way of thinking, toprevent risks and expand profit-earning opportunities.
The Company is aggressively developing new businesses and business fields and expects to increase thenumber of Group companies through M&A. With thisgrowth comes the challenges of developing management
personnel, among other things. My role will be to work with

the Company to determine what approach to take in developing management personnel.
Kobayashi With my experience as the Company’s legal
counsel and as a member of the Audit and Supervisory
Committee, I hope to contribute to the Company’s sustainable growth by preventing fraud and risks through the Boardof Directors’ supervisory function, focusing on compliance.
At the same time, I recognize the need to understand“good risks” that can feed the future of the Company andallow the Company to learn through failure. With no risk
comes no return, and I want to contribute to the organization through constructive recommendations, not just by
putting on the brakes.
Sugihara I believe that the role of outside directors is topursue the sustainable development of the Company andshareholder interests based on objective judgment. If, in the
future, any matter that may be questionable from an objective
standpoint comes up, we will actively express our opinions.
I have diverse business experience, focusing on investments, M&A, and firm management. I would like to contribute by providing useful advice, especially regarding
investments, M&A projects, and strengthening consolidated
management, which are important strategies for the Company. I will do my utmost to use my experience and expertise to enhance shareholder value by contributing to theCompany’s development, its employees’ well-being, and its
business’s growth.

65

Sanyo Trading Integrated Report 2023

Management Foundation

Corporate Officers(As of December 21, 2023)

Director & Executive Officer
In Charge of Administration Divisions

President & CEO

Number of shares held
Attendance at the Board of Directors meetings

45,60014/14 (100%)

April
1982 Joined the Company
October 2008 General Manager of Tokyo Rubber Business Unit 3
October 2010 General Manager Assistant to Operational Headquarters
January
2012 President of Sanyo Corporation of America
October 2012 Executive Officer of the Company
		President of Sanyo Corporation of America
December 2013	Director & Executive Officer, General Manager of Operational
Headquarters of the Company
		
Chairman of SANYO TRADING (SHANGHAI) CO., LTD.
October 2014	Director & Executive Officer, General Manager of Corporate Strategy
Department
December 2018 President & CEO (present post)

Number of shares held
Attendance at the Board of Directors meetings

1982	Joined Taiyo-Kobe Bank (present Sumitomo Mitsui Banking
Corporation)May
2012 Joined the Company
April2013 General Manager of Credit Department
December 2019	Executive Officer supervising Administration Divisions, General
Manager of Credit and Legal Department
October 2020	Executive Officer supervising Administration Divisions, General
Manager of Personnel DivisionDecember 2020	Director & Executive Officer, In charge of Administration Divisions,
General Manager of Personnel Division
October 2022	Director & Executive Officer, In charge of Administration Divisions
December 2022	Managing Director & Executive Officer, in charge of Administration
Divisions (present post)

Mitsuyasu Hirasawa

Director & Executive Officer
In charge of Business Divisions

Director & Executive Officer
In charge of Business Divisions

Number of shares held		Attendance at the Board of Directors meetings

29,40014/14 (100%)

April
October
April
October

1985 Joined the Company
2006	General Manager of Machinery & Environmental Business Unit 1
2009 General Manager of Machinery & Materials Business Unit2013	Executive Officer, General Manager of Machinery & Materials
Business Unit
December 2013 Executive Officer of the Company
		President of Sanyo Corporation of America
October 2016	Executive Officer, General Manager of Chemical Business Unit
December 2018	Representative Director and President of Sanyo Machinery Co., Ltd.
December 2019	Director & Executive Officer, In charge of Business Divisions, General
Manager of Machinery & Environmental Business Unit
June
2020	Director & Executive Officer, In charge of Business Divisions, General
Manager of Machinery & Environmental Business Unit, General
Manager of Scientific Instruments Department
October 2021	Director & Executive Officer, In charge of Business Divisions (present post)

7,900
14/14 (100%)

April

Kenichi Shindo

Number of shares held		Attendance at the Board of Directors meetings(Newly appointed on December 22, 2022)

Mitsuo Ogawa
Outside Director(Independent Officer)

Number of shares held
15,600Attendance at the Board of Directors meetings
14/14 (100%)
Attendance at Audit and Supervisory Committee meetings –(Newly appointed on December 21, 2023)
April
1982 Joined the Company
October 2006	President of Sanyo Corporation America
April2009	General Manager of Tokyo Chemical Business Unit 2 of the Company
October 2013	Executive Officer, General Manager of Corporate Planning Department
October 2014	Executive Officer, General Manager of General Affairs Department
October 2015 Executive Officer supervising Administration Divisions
December 2017	Director & Executive Officer in charge of Administration Divisions
October 2022	Director & Executive Officer in charge of Administration Divisions,
General Manager of Domestic Subsidiary Coordination Department
December 2022	Director & Executive Officer in charge of Administration Divisions
December 2023	Director (Audit and Supervisory Committee Member) (present post)

3,200
10/10 (100%)

April
May

0
14/14 (100%)

1981	Joined ITOCHU Corporation
1994	Assistant to CEO for Asia Bloc (based in Hong Kong) of ITOCHU
Corporation
April
2004	General Manager of Financial Business Development Department,
ITOCHU Corporation
April
2005 Seconded to Orient Corporation (Executive Officer)
July
2007	Acting General Manager of Financial Business Department andGeneral Manager of Financial Retail Promotion Department,
ITOCHU Corporation
April
2008	General Manager of Finance, Real Estate, Insurance & Logistics
Management Planning Department, ITOCHU Corporation
May
2010 Director (part-time) of POCKETCARD CO., LTD.
April
2012	Assistant CEO for ASEAN & Southwest Asia Bloc in charge ofCorporate Planning, ITOCHU Corporation (based in Singapore)May
2014	Director, Vice President supervising Sales Group, POCKETCARD
CO., LTD.
March
2018	Vice President, Executive Officer, General Manager of Planning
Headquarters, POCKETCARD CO., LTD.
December 2021 Director of the Company (present post)

66

Number of shares held		Attendance at the Board of Directors meetings(Newly appointed on December 22, 2022)

April
1988 Joined Kanematsu Corporation
October 2000	Joined Asahi Audit Corporation (currently KPMG AZSA LLC)
December 2004 Hasegawa CPA Office, Representative (present post)
December 2017	Director (Audit and Supervisory Committee Member) of theCompany (present post)

Number of shares held
0
Attendance at the Board of Directors meetings
14/14 (100%)
Attendance at Audit and Supervisory Committee meetings 15/15 (100%)
April
2000 Joined YUASA and HARA
September 2013	Joined Yamada, Goya & Suzuki (present post)June
2014	Outside Director (Audit and Supervisory Committee Member) of
Kanematsu Sustech Corporation
December 2021	Director (Audit and Supervisory Committee Member) of theCompany (present post)

Executive Officers

Masanobu Shintani

Toshiaki Mizusawa

Yasushi Komiya

President & CEO*
Number of shares held
Attendance at the Board of Directors meetings

Number of shares held		
0
Attendance at the Board of Directors meetings
14/14 (100%)
Attendance at Audit and Supervisory Committee meetings 15/15 (100%)

Outside Director(Independent Officer)
Audit and Supervisory­Committee Member

1989 Joined the Company
2012	General Manager of Industrial Products No. 2 Business Unit2014	General Manager of Industrial Products No. 1 Business Unit
2015 General Manager of Industrial Products Business Unit2016	Executive Officer, General Manager of Industrial Products Business Unit
2020	Executive Officer, General Manager supervising Industrial Products
Business Unit, General Manager of New Business Development
Department
December 2020	Senior Executive Officer, General Manager supervising Industrial
Products Unit, General Manager of New Business Development
Department
December 2022	Director & Executive Officer, General Manager of New Business
Development Department
October 2023	Director & Executive Officer, In charge of Business Divisions (present post)

Outside Director(Independent Officer)

Outside Director(Independent Officer)
Audit and Supervisory­Committee Member

Director
Audit and Supervisory­Committee Member

Kuniaki Kobayashi

April
October
October
October
October
October

Hirotaka Sugihara

Asako Hasegawa

Hiroshi Shirai

Toshiaki Mizusawa

Masanobu Shintani

0
10/10 (100%)

1987	Joined Nippon Electrical Equipments Co., Ltd. (currently DENSO
Corporation)
1991	Joined Sanwa Research Institute Corp.
(currently Mitsubishi UFJ Research and Consulting Co., Ltd.)
April
2000 Joined PwC Consulting Co., Ltd.
March
2004	President of Craig Consulting (present post)
December 2022	Director of the Company (present post)

Executive Officer*
In charge of Administration
Divisions

Kenichi Shindo

Executive Officer*
In charge of Business
Divisions

Mitsuyasu Hirasawa

Ryuichi Otani

Koji Taguchi

Yoshimi Namba

Executive Officer*
In charge of Business
Divisions

April

June

Executive Officers
General Manager of
Rubber Business Unit

Representative Director
and Vice President of
Cosmo Computing
System, Inc.

Executive Officer
General Manager ofLife Science Business Unit

Executive Officer
General Manager ofCorporate Planning
Department(Note) Executive officers marked with an asterisk (*) also serve as directors.

67

Sanyo Trading Integrated Report 2023

Management Foundation

Eleven-year Financial Summary

Sanyo Trading Co., Ltd. and Consolidated Subsidiaries (FY9/2013 to FY9/2023)

2013.92014.92015.92016.92017.92018.92019.92020.92021.92022.92023.951,075
7,671
5,230
2,440
2,772
1,475

58,618
8,659
5,480
3,178
3,516
1,982

60,672
9,450
5,844
3,606
4,110
2,794

59,90810,017
5,964
4,052
4,274
2,757

67,73812,264
7,325
4,938
5,270
3,351

78,45013,410
8,147
5,263
5,575
3,635

83,23014,883
9,011
5,871
6,075
4,018

76,087
14,206
9,414
4,791
5,271
3,013

89,78815,51010,003
5,506
6,190
4,256

111,250
17,144
11,825
5,319
6,299
4,296

122,596
20,473
13,732
6,740
7,149
4,830

Financial position (Millions of yen)*1
Total assets
Interest-bearing debt
Net interest-bearing debt
Net assets

25,181830(988)
15,33830,051
1,441(2,053)
16,95330,285
1,084(2,120)19,39432,455845(2,866)
20,95438,987
1,655(979)
24,60041,606
1,906(562)
26,75643,731
1,309(3,239)29,343

47,2304,529(5,889)31,03850,834
2,432(6,231)
34,72562,8596,070
190
39,212

68,537
5,715(1,316)43,890Cash flows (Millions of yen)
Cash flows from operating activities
Cash flows from investing activities
Free cash flows
Cash flows from financing activities
Cash and cash equivalents, end of year

1,211
(228)
982
(961)
1,815

2,106
(385)
1,721
(82)
3,490

909
(196)
712
(1,047)
3,201

2,997
(1,201)
1,795(1,220)3,712

178(1,359)(1,180)
(15)
2,601

1,583
(408)
1,175
(1,297)
2,468

5,088
(1,057)
4,030(1,957)
4,548

6,186
(2,189)3,997
1,834
10,4182,253(1,009)1,244(3,301)
8,663(3,395)(1,809)(5,204)
1,864
5,718

5,917
(2,914)
3,003(1,867)6,900

Per share information (Yen)*2
Earnings per share (EPS)
Book-value per share (BPS)
Annual dividends

51.60
513.66
15.00

68.89
574.4417.00

97.68
657.0524.50

96.39
711.1724.50

117.10831.8729.50

126.99922.6732.00

140.36
1,011.31
37.00

105.22
1,069.41
37.50

148.52
1,195.18
39.00

149.67
1,349.41
40.00

168.01
1,509.92
43.00

Financial indicators
Gross profit margin ratio
Operating profit to net sales ratio
Ordinary income to net sales ratio
Net income to net sales ratio
ROA
ROE
Shareholders’ equity ratio
D/E ratio (multiplier)

15.0%
4.8%
5.4%
2.9%
11.5%
11.0%
59.2%
0.06

14.8%
5.4%
6.0%
3.4%
12.7%
12.7%
54.7%
0.09

15.6%
5.9%
6.8%
4.6%
13.6%
15.9%
62.1%
0.06

16.7%
6.8%
7.1%
4.6%
13.6%
14.1%
62.7%
0.04

18.1%
7.3%
7.8%
4.9%
14.8%
15.2%
61.1%
0.07

17.1%
6.7%
7.1%
4.6%
13.9%
14.5%
63.5%
0.07

17.9%
7.1%
7.3%
4.8%
14.2%
14.5%
66.2%
0.05

18.7%
6.3%
6.9%
4.0%
11.6%
10.1%
64.9%
0.15

17.3%
6.1%
6.9%
4.7%
12.6%
13.1%
67.5%
0.07

15.4%
4.8%
5.7%
3.9%
11.1%
11.8%
61.7%
0.16

16.7%
5.5%
5.8%
3.9%
10.9%
11.8%
63.4%
0.13

252
166
42

256
164
42

260
177
45

295
188
50

326
193
50

349
211
56

368
224
59

413
234
70

442
241
74

536
251
78

687
273
89

25.3%

25.6%

25.4%

26.6%

25.9%

26.5%

26.3%

29.9%

30.7%

31.1%

32.6%

0.0%

0.0%

0.0%

0.0%

1.7%

4.4%

4.0%

5.2%

4.7%

3.5%

5.3%

0.0%

0.0%

0.0%

0.0%

0.0%

0.0%

9.1%

10.0%

6.7%

15.4%

33.3%

12.56

11.70

11.10

10.84

10.74

10.36

10.18

9.92

9.50

9.78

9.44

–

–

–

–

67%

85%

96%

100%

100%

100%

88%

–
7

–
7

–
6

–
8

6.7%
10

2.4%
9

4.0%
10

3.4%
12

7.1%
13

5.2%
16

4.4%
19

Operating results (Millions of yen)

Net sales
Gross income
Selling costs and administrative expenses
Operating profit
Ordinary income
Income attributable to owners of parent

Non-financial indicators / Other information
Employees (consolidated)
Employees (non-consolidated)
Women employees (non-consolidated) Percentage of women employees(non-consolidated) Percentage of women managers(non-consolidated) Percentage of men utilizing childcare leave(non-consolidated)*3 Average years of service (non-consolidated) Retention rate of new graduate employees(non-consolidated)*4
Turnover rate (non-consolidated)*5
Number of consolidated Group companies

68*1	Interest bearing debt = Short-term debt + Long-term debt (excluding lease obligations)
Net interest bearing debt = Interest-bearing debt - cash and cash equivalents*2	Per share indicators are calculated taking into consideration the effect of the 2-for-1 stock split conducted on February 1, 2020.
*3	Percentage of men utilizing childcare leave = Number of men (whose partner gave birth) who started childcare leave by the time of the survey (including
those who have submitted a request to start childcare leave) / Number of men (whose partner gave birth) in the previous fiscal year to the survey x 100*4	Retention rate of new graduate employees = percentage of base year new graduate recruits remaining in employment after three years*5	Turnover rate = number of employees leaving employment in the fiscal year as a percentage of the total number of permanent employees on the firstday of the fiscal year

69

Sanyo Trading Integrated Report 2023

Management Foundation

Stock Information (As of September 30, 2023)

Corporate Data (As of September 30, 2023)

Stock Status

Corporate Overview

Stock Listing

Prime Market of the Tokyo Stock Exchange

Securities Code3176

Breakdown of Stocks by Stockholder
Financial institutions

Shareholder Registry
Administrator

Tokyo Securities Transfer Agent Co., Ltd.

Total Number of ­Authorized Shares

40,000,000

Total Number of ­Outstanding Shares

29,007,708

Number of Shares
Per Unit

100

Number of
Shareholders

6,015

Treasury shares

1.8%

Foreigncorporations, etc.

6.4%

Other
corporations

0.8%

Financial
instruments
business
operators

Total number ofoutstanding shares

29,00737.1%(thousand shares)

15.6%

Individuals, etc.

38.3%

Japan: 12 Overseas: 7

Employees

Non-consolidated: 273
Consolidated: 687¥1,006,587,450

Fiscal Year

October 1 to September 30 of thefollowing year

Japan: 4
Overseas: 16 bases in 10 countries

General Meeting of
Shareholders

December of every year

Sanyo Trading Co., Ltd.

EstablishedMay 28, 1947

Head Office2-11, Kanda Nishiki-cho, Chiyoda-ku
Tokyo, 101-0054 Japan
Tel: +81-3-3518-1111

Capital
Number of Bases

Organization (As of November 30, 2023)
General Meeting of
Shareholders
Audit andSupervisory Committee

Major Stockholders
Number of shares held(Thousand shares)

Shareholding ratio (%)*

2,801

9.74

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

Custody Bank of Japan, Ltd. (Trust Account)

2,533

Toagosei Co., Ltd.

MUFG Bank, Ltd.

1,137

Sumitomo Mitsui Trust Bank, Limited

BOT Lease Co., Ltd.

1,128

Meiji Yasuda Life Insurance Company
Total

New Business Development
Department

3.95

Compliance Committee
Risk Management
Committee
Sustainability Committee
Investment and Loan
Committee

3.95

Committee of
Executive Officers

3.92

1,095

3.81

567

1.97

675

Sanyo Trading Employee Stock Ownership Association

President & CEO

3.95

1,136

Susumu Tamaki

Internal Audit Section

5.20

1,137

Corporate Planning
Department

Board of Directors

8.88

1,497

Sumitomo Mitsui Banking Corporation

13,706

Business Divisions

47.72

Stock
Stock Price
Price
Trading volume

Administration Divisions

Trading volume (Shares)

Stock price (Yen)

2,000,000

Chemical Business Unit

Finance & Accounting Department

SANYO TRADING (VIET NAM) CO., LTD.
(Ho Chi Minh City, Hanoi)

Green Technology Business Unit

Risk Management Department

SANYO TRADING INDIA PRIVATE LTD.
(Gurgaon)Industrial Products No. 1 Business Unit

Consolidated Management Promotion
Department

SUN PHOENIX MEXICO, S.A.de C.V.
(Irapuato)

Industrial Products No. 2 Business Unit

IT Promotion Department

Strategic Logistics Department

Head Office
Nagoya Branch
1,000,000

SANYO TRADING ASIA CO., LTD.
(Bangkok, Laem Chabang)

Human Resources &General Affairs Department

PT. SANYO TRADING INDONESIA(Jakarta)
Singapore SANYO TRADING PTE. LTD.
(Singapore)
SANYO TRADING EUROPE GmbH
(Munich)SANYO TRADING INTERNATIONAL(HONG KONG) CO., LTD.

[Domestic Offices]

750

SANYO TRADING (SHANHAI) CO., LTD.
(Shanghai, Tianjin, Guangzhou)

Rubber Business Unit

Life Science Business Unit

1,500

Overseas Group Companies
SANYO CORPORATION OF AMERICA(New York, Detroit, Alabama)

2.35* Calculation of shareholding ratio does not include 236,385 treasury shares.

Stock price

Number of­Consolidated
Subsidiaries

Company Name

Osaka Branch
Hiroshima Office

Domestic Group Companies
COSMOS SHOJI CO., LTD.
CHEM-INTER CORPORATIONSANYO LIFE MATERIAL CO., LTD.
FREEMAN (JAPAN) C., LTD.
SANYO MACHINERY CO., LTD.
NIHON RUFUTO CO., LTD.

0

9 10 11 12 1 2
2020
2021

3

4

5

6

7

8

9 10 11 12 1 2
2022

3

4

5

6

7

8

9 10 11 12 1 2
2023

3

4

5

6

7

8

9 (Month)(Year)

0

SANYO TECHNOS CO., LTD.
SHIN-TOYO KIKAI KOGYO CO., LTD.
YPTECH CO., LTD.
SCRUM INC.
COSMO COMPUTING SYSTEM, INC.
KOTAI BIOTECHNOLOGIES, INC.

7071