Integrated Report 2022
(Creating Corporate Value Report)

Refreshing the Air

AboutS.T. CORPORATION

Message|Our Value
Creation|

Business
Activities|

Sustainability
Activities|

Governance|

Financial and
Non-ﬁnancial Information|

Corporate
Information|

Integrated
Report 2022

Table of Contents and Compilation Policy
Table of Contents and Compilation Policy
About S.T. CORPORATIONBusiness Activities
16

Activities of Domestic Business18

Activities of Overseas and New Businesses

02

Management Philosophy and Vision03

Forte of S.T.

Sustainability Activities

04

History of Value Creation

19

Environmental Activities

05

Situation of Each Business20

Social Activities

06

Financial Highlights

07

Non-ﬁnancial Highlights

Message

Governance
22

Eﬀorts for Governance

23

Eﬀorts for Corporate Governance

08 President Message
10

Engagement of Stakeholders

Our Value Creation

Financial and Non-ﬁnancial Information
31

Financial Information

32

Non-ﬁnancial Information

13 Creation of Value of S.T.
14

Value Creation Process

Corporate Information

15

Material Issues and Primary Measures

33

Location

34

Corporate Proﬁle, Group Companies,
and the Entire Picture of Communication Tools【CompilationPolicy】This report is aimed at conveying our activities for creating the value of S.T. to all
stakeholders and deepening their understanding of
S.T. Group. The subject period is the ﬁscal year ended
March 2022 (Apr. 1, 2021 to Mar. 31, 2022). The
ﬁscal years indicated in graphs and tables are thoseending March unless otherwise speciﬁed.
The subject organizations are our company and S.T.
(consolidated) unless otherwise speciﬁed. “S.T. Group”
means the entire S.T. Group, “S.T. Group (in Japan)”means S.T. (non-consolidated) and domestic groupcompanies, and “S.T. (non-consolidated)” means
S.T. (non-consolidated).
The guidelines we referred to are the Value Reporting Foundation (VRF), “International Integrated
Reporting Framework,” and “Integrated Disclosure
and Dialogue Guidance for Co-creation of Value” ofthe Ministry of Economy, Trade and Industry. This
report was issued in December 2022.
【Forward-looking Statement】This report contains
forward-looking statements regarding S.T. CORPORATIONʼs future plans, strategies, and performance. Such forward-looking statements are
based on information available as of the issuanceof this report. Please note that the companyʼsactual performance may diﬀer greatly fromforward-looking statements due to various factors.
【Market Scale and Share】INTAGE Inc.ʼs SRI+
(in value terms) for “deodorizers (for refrigerators)” during a 3-year period from 2019 to
2021, “mothprooﬁng agents for food” during a
4-year period from 2018 to 2021, “disposable
warmers, (excluding those for the eye parts)”
during a year period from April 2021 to March
2022, other items during a period fromJanuary to December 2021, “deodorizers andair fresheners (excluding those for clothes andanti-virus ones)” and “mothprooﬁng agents(excluding those for dolls).”01

AboutS.T. CORPORATION

Message|Our Value
Creation|

Business
Activities|

Sustainability
Activities|

Governance|

Financial and
Non-ﬁnancial Information|

Management Philosophy and Vision

Refreshing the Air
Our corporate philosophy is “Sincerity.”

The management philosophy of S.T. Group is to contribute to society byproviding customers with the most reliable products.

We aim to become a company loved by customers and society aroundthe world, by brightening and enlivening the life of everyone through air.

Corporate
Information|

Integrated
Report 202202AboutS.T. CORPORATION

Message|Our Value
Creation|

Business
Activities|

Sustainability
Activities|

Governance|

Financial and
Non-ﬁnancial Information|

Corporate
Information|

Integrated
Report 2022

Forte of S.T.

Shoshu-Riki

1

No.

Deodorizers and
Air Fresheners(excluding those for clothes andremoving viruses)

Domestic market share

27%* Intage Inc. SRI + (in value terms)
Period: Apr. 2021-Mar. 2022

Dashu-Tan

1

No.

Deodorizers(for refrigerators)
Domestic market share

76%* Intage Inc. SRI + (in value terms)
Period: Apr. 2018-Mar. 2022

Kome-Touban

1No.

Mothprooﬁng Agentsfor Rice Storage
Domestic market share82%* Intage Inc. SRI + (in value terms)
Period: Apr. 2017-Mar. 2022

Mushuda1

No.

Mothprooﬁng
Agents(excluding those for dolls)
Domestic market share

44%* Intage Inc. SRI + (in value terms)
Period: Apr. 2021-Mar. 2022

Drypet1

No.

Dehumidiﬁers
Domestic market share

33%* Intage Inc. SRI + (in value terms)
Period: Apr. 2021-Mar. 2022

We have many Unique Brands in Niche Markets.

03AboutS.T. CORPORATION

Message|Our Value
Creation|

Business
Activities|

Sustainability
Activities|

Governance

History of Value Creation
Founded in 1946, and we started by manufacturing and selling mothprooﬁng agents to solve
the problem of insects eating kimonos. Since then, we have grown by solving a variety of trouble
and discomforts in our lives with our unique air-care core technologies and delivering refreshingand soothing feeling to our customers.

|

Financial and
Non-ﬁnancial Information

1946 (post-war reconstruction period)
Released mothprooﬁng
agents to prevent insect
bites on precious clothing.

1946

1970

Corporate
Information|

Integrated
Report 2022

04

2011 (at the time of the Great East Japan Earthquake)
Released a home-use radiation meter toalleviate anxiety about radiation.

1981 (the peak of the growth economy period)
Released a dehumidiﬁer tosolve the problem of mold causedby the airtightness of condominiums.

1971 (high economic growth period)
Released air fresheners to
improve public health andadd color to people's lives.

|

Sales in the ﬁscal year ended March 2022

45.5

billion yen

2013
Released functional Air Care productsthat purify air with the power of the forest.

1999 (mature economy period)
Released fragrances anddeodorants to eliminate
worrisome odors.

1998

2013

Changes in management in line with the changes of the times【From 1946: Founding period】
Solidifying the business foundation
as a manufacturer【From 1970: Growth period】
Management for creating new markets
through aggressive investment【From 1998: Mature period】
Strong and ﬂexible management【From 2013: Turning point】
Management for exploration and deepening

After the war, many women were saddenedby their precious kimonos being eaten by
insects. Seiichi Suzuki, one of the founders,saw this and established S.T. Chemical Industries
Co., Ltd., the predecessor company, in 1946and started manufacturing and selling mothproofing agents.

From around 1970, the Japanese economy
accelerated its growth. Along with this, theliving environment has changed signiﬁcantly,
and new lifestyle concerns and needs haveemerged. In 1971, we entered the air freshener market, and in 1981, we created a new
dehumidiﬁer market. In addition, we actively
invested in capturing strong demand, such as
starting overseas expansion in Thailand,
Taiwan, the Philippines, etc.

Since 1990, the economy has stagnated as
the domestic population growth has slowed.
We implemented a management reform “narrowing down and concentration” to shift from theprevious expansion policy to the pursuit of astrong and ﬂexible structure. Our current
major brands, such as Shoshu-Riki, Dashu-Tan,and Kome-Touban, were born around thistime.

In the 2010s, the times changed dramaticallytoward the green economy. In addition toproviding high value-added products andservices in response to changes in consumer
values and lifestyles, we are promoting management that considers all stakeholders by reducing
CO2 emissions and responding to resource
depletion.

AboutS.T. CORPORATION

Message|Our Value
Creation|

Business
Activities|

Sustainability
Activities|

Governance|

Financial and
Non-ﬁnancial Information|

Corporate
Information|

Integrated
Report 202205

Situation of Each Business
Air Care (Deodorizers and Air Fresheners)

Cloth Care (Mothprooﬁng Agents)

Sales Composition by Category

Shoshu-Rikifor entrances andliving rooms

Shoshu-Riki
Spray

Shoshu-Riki
DEOX

Dashu-Tan

Thermal Care (Disposable Warmers)

Home Care
HumidityCare

12.8 %

Onpax(non-adresive type)

Onpax(adresive typefor socks)

On Style

Mushuda(closet)Mushuda(cover style)MushudaPremium Aroma

Hand Care (Gloves)
Sales in the ﬁscal year
ended March 2022

45.5

Thermal Carebillion yen

Air Care43.9 %
Family(ﬁngertipreinforced)

9.6 %Humidity Care (Dehumidiﬁers)

Mushuda(Tick repellent)

6.3 %Hand Care

Haru-Onpax(adresive type)

9.3 %Cloth Care

Family Medium- Family MediumThick Soft
Thick Rubber Grove
Feelingwith Sleeves

FamilyPrima

Home Care (Other)

18.1%

DrypetCompact

DrypetSheet type

Bincho-Tan
Drypetfor shoes

DrypetClear

Senjo-Riki
Kome-Touban
ﬁzzy washing machine
drum cleaner

Shinsen-Ban

MoriLabo
Pollen measuresAboutS.T. CORPORATION

Our Value
Creation|

Message|Business
Activities|

Sustainability
Activities||

Governance

Financial and
Non-ﬁnancial Information|

Corporate
Information

Integrated
Report 2022|

Financial Highlights
Net sales

Operating income・Operating income margin
Operating income

45.5billion yen

Operating income margin

3.3billion yen 7.1%
Operating income(billion yen)

48.6

50

47.8

47.5

49.7

(billion yen)

4

45.5

40

7.2
5.9

3.5

Overseas Sales

1.1billion yen

7.1

7.9
3.9

7.1

(%)
5

3.1billion yen 6.5％

(billion yen)(billion yen)

3

2.4

3.3

2.8

0

4

2.5

2.3

2018/3

2019/32020/32021/302022/3

2018/3

2019/32020/32021/32022/3* The new accounting standards have been applied since the ﬁscal year ended
March 2022

* The new accounting standards have been applied since the ﬁscal year ended
March 2022

Revenue decreased due to a decrease in the sales
volume of gloves, etc., due to the eﬀects of stabilizing
demand and price ﬂuctuations associated with thenovel coronavirus infection.

Proﬁt decreased due to the gradual recovery of sales
activities that had been restrained due to the preventive
measures against the novel coronavirus, as well as thestrategic investment in marketing expenses.

Dividend per share・Dividend payout ratio
Payout ratio

Dividend

60

40

28.3

31.00

10

40

36.00

35.2

32.5

36.00

37.00

ROE

0

6

7.8

6.0

4

8.2

2018/3

2019/32020/32021/32022/3

Regarding year-end dividends, based on our basic
policy of stable dividends, we set annual dividend at
38 yen and dividend payout ratio at 76.1%.

2021/32022/30.9billion yen

Capital expenditures

R&D expenses

2.7billion yen

Capital expenditures

3.0

5.3

5.6

3.5

4.3
2.4
2018/3

2019/32020/32021/32022/3

Although we made eﬀorts to strengthen our earning
power, our revenue deteriorated due to recording an
impairment loss as an extraordinary loss.

0

2.9

2.9

2020/32021/3

6.5
3.1

(%)
6

0

2

0

2018/3

2019/32022/3

Outside Japan, sales increased due to the progress ofstructural reform, Air Care in Thailand performing well,and the re-entry into the Chinese market.

Marketing expenses

11.3billion yen
12

11.6

11.2

11.0

11.2

11.3

2018/3

2019/32020/32021/32022/3

8

1.8
1.3

1.5

0.5

6.0

2.7

2.0

1.0

6.1

(billion yen)

3.1

3.1

2.5

2
0

2020/3

In addition to the decrease in operating income, theimpairment loss of the disposable warmer business
was recorded as an extraordinary loss, resulting in adecrease in proﬁt.

3.5

6.3

20

0

2019/3(billion yen)

9.0

8

38.00

ROA

(%)

(%)

2018/3R&D expenses

Payout ratio

76.1

44.1

0

7.8
3.7

Overseas sales ratio

1

R&D expenses・Capital expenditures
ROA

3.5% 2.4%
Dividend(yen)

ROE・ROA
ROE

38yen 76.1%

1.1

1

1

7.2
3.5

3

1.8

2

2
20

0

Overseas sales ratio

Overseas Sales

30

10

Overseas Sales・Overseas Sales Ratio

Operating income margin

3.4

3Proﬁt attributable to owners of parent

0.6

0.6

2018/3

2019/30.7

2020/30.8

2021/30.9

2022/3In research and development, we mainly enhanced
basic research, and in capital expenditures, we madeequipment for new products and increased production capacity.

40

Among marketing expenses (advertising and sales
promotion expenses), we actively invested in digitaladvertising and other expenses for sales promotion.

06

AboutS.T. CORPORATION

Message|Our Value
Creation|

Business
Activities|

Sustainability
Activities|

Governance|

Financial and
Non-ﬁnancial Information|

Corporate
Information

Integrated
Report 2022|

Non-ﬁnancial Highlights
Total CO2 emissions (Scopes 1 and 2)

Total weight of waste

Water consumption

Number of employees

2,892t-CO

1,393t45,054t953

2

Scope1
4,039(t-CO 2)

4000

3,619

3,500

Scope2
(t)

3,864

2,892

3000

2,592

2,523

3,067

2,908

864

1,393
1,183

40,000848(People)50,00040,634

40,63844,26945,37845,054

1,027

977

972

956

978

2018/3

2019/32020/32021/32022/3600

20,000300

10,0000

2018/3

2019/32020/32021/32022/30

2018/3

2019/32020/32021/32022/3*The subject organization is S.T. Group (in Japan).

In FY 3/2020, CO2 emissions augmented through theacquisition of S.T. MYCOAL, but we promoted the purchaseof electric power generated from renewable energy, so
CO2 emissions have been declining.

The total weight of waste has been increasing since
FY 3/2020, due to the acquisition of S.T. MYCOAL.

Water consumption has been increasing since FY
3/2020, due to the acquisition of S.T. MYCOAL.

Total actual working hours per person
per year

Ratio of employees who took an annual
paid leave

1,744h
(h)

59.6%

60.8

(%)

1,667

1,674

1,691

948

2018/3

2019/3

1,032

997

953

400

*The subject organization is S.T. Group (in Japan).

1,743

952
800

30,000*The subject organization is S.T. Group (in Japan). *Total CO2 emissions mean the sum of Scopes 1 and2. *Scope 2 emissions was calculated by multiplying the consumption of electric power fromrenewable energy by the adjusted emission coeﬃcient for each electric power menu and multiplying
the other power consumption by the national average emission coeﬃcient and then adding up them.

2000

1200

1,914

1000

0

1,329

1200

900
2000

(t)

1500

1,744

60

54.7

1500

2022/3Through the acquisition of S.T. MYCOAL, number of
employees increased in FY 3/2020.

11.5%

138th place
11.5

11.3

12

10.9

53.9
8

(place)

200

168

156

10.2

8.3

138

1000

138

131

100
20

2021/3Favorability ranking of companies

(%)

40

2020/3

Ratio of female managers

59.6

56.2

0

4

500

0

2018/3

2019/32020/32021/32022/30

2018/3

2019/32020/32021/32022/30

2018/3

2019/32020/32021/32022/30

2018/3

2019/32020/32021/32022/3*The subject organization is S.T. Group (in Japan).
*The total actual working hours per person per year means the working hours
of regular employees.

*The subject organization is S.T. Group (in Japan).
*The total actual working hours per person per year means the working hours
of regular employees.

*The subject organization is S.T. Group (in Japan).

*The favorability ranking of companies was taken from the Reputation-Business
Person Edition of Nikkei Survey on Corporate Images.

It has been increasing, but we promote healthy ways ofworking and the improvement in labor productivity bybreaking away from the conventional ways of working
and reducing working hours.

For the work-life balance, we set several months inwhich employees are encouraged to take an annual
paid leave, and continuously promote it.

We uphold the goal of increasing the ratio of female
managers so that various personnel can ﬂourish, andpromote the design of systems for enabling women to
keep working, training for career development, etc.

In brand value management, we aim for the 150th placeor so in the Favorability Ranking of Companies as abenchmark.

07

|

About
S.T. CORPORATION

MessageOur Value
Creation|

Business
Activities|

Sustainability
Activities|

Governance|

Financial and
Non-ﬁnancial Information|

Corporate
Information|

President Message

We will create a market with
the new air business and expand it globally.

First Year of Rebirth(Creating a foundation for growth)President & CEO

Takako Suzuki

Integrated
Report 2022

08

|

About
S.T. CORPORATION

MessageOur Value
Creation|

Business
Activities

Looking Back on the Last 10 Years|

Sustainability
Activities|

Governance|

Financial and
Non-ﬁnancial Information|

Corporate
Information|

Integrated
Report 2022

Listening to Stakeholders

In April 2013, I was appointed as President and CEO, and the ﬁscal year ending March 2023 would mark the

In the dialogue of experts, investors and experts in the ﬁelds of the environment and human rights discussed

tenth year since I took on this position. Since my appointment, I have aimed to build a management founda-

and gave advice about business opportunities and management risks arising from the increasing demandtion that is not aﬀected by the external environment and have aimed for a market capitalization of 100 billion

from the environment and society, critical issues for our company, and examples of leading companies, etc.

yen. At the time of my appointment, our proﬁt was in a gradual decline, and for the ﬁrst ﬁve years, I gave top

In particular, we are acutely aware of the importance of incorporating changes in the business, management

priority to improving proﬁt and turned to proﬁt-oriented management. In the latter ﬁve years, we shifted ourenvironment, and consumer trends surrounding our company into our own growth and the urgent need tofocus to a growth strategy, under the slogan of "transformation into a comprehensive air business group," anddevelop a management system to deal with new business and management risks that arise from theseworked to cultivate overseas, B2B, and E.C. markets, as well as develop new air business models.

changes. We would like to continue receiving your opinions on our management and build a new S.T. that

With regard to proﬁt improvement, we believe that we have achieved a certain level of success by promoting

meets society's expectations.

the premiumization of products and the liquidation of unproﬁtable products and businesses under the basic
policy of "brand value management." On the other hand, we have recognized that the expansion of overseas,
B2B, and E.C. markets, which are positioned as growth engines, is still in progress and that new businesses
have not been able to contribute to earnings.

Becoming an Organization that Responds Flexibly to New
Opportunities and Risks

Furthermore, in the disposable warmer business acquired from MYCOAL in 2017, neither the development

As the ﬁrst step of our reform, we made a major management system reform.

of new innovative products nor the cultivation of overseas markets proceeded as expected, and an impair-To achieve global growth, we have returned to our customer-ﬁrst policy and established a new Global

ment loss was recorded in the ﬁscal year under review. We take this drastic drop in proﬁt seriously and have

Marketing Division to strengthen the brand power and proﬁtability of our existing businesses in Japan anddecided to take this opportunity to implement management reform.

overseas. To create businesses in new ﬁelds and markets, we have established a New Business Development
Oﬃce as an organization under the management's direct control, independent of existing businesses.

Seeing Turbulent Times as Opportunities

In addition, as a global standard governance system, we integrated functions such as Corporate Planning, ESG
Promotion, Digital Transformation (DX), Human Resources, General Aﬀairs, and Legal Aﬀairs into a Corporate

The prolonged novel coronavirus pandemic, the Ukraine crisis, the soaring energy and raw material prices, theValue Enhancing Division that collectively manages business opportunities and management risks.

weak yen, geopolitical threats, successive natural disasters, and heightened environmental awareness... In

Under the new organizational structure, we will strive to achieve sustainable growth and improve corporate

order for our corporate group to survive in the age of VUCA, we have no choice but to grasp the dramatic

value while engaging in dialogue with all our stakeholders.

changes of the times and turn them into opportunities.
In the current ﬁscal year, we have set a policy of rebirth (building a foundation for growth). We will carry out
management reform, thoroughly review strategies, redistribute resources to achieve an ideal future, andAiming to be a "Comprehensive Air Business Group"

strive for global growth and business creation in new ﬁelds and markets.

Air is a shared resource that exists not only in homes, but also in oﬃces, factories, hospitals, nursing homes,

At the same time, we strive to conserve the global environment, a valuable resource shared by all humankind,commercial facilities, public spaces, and many other spaces around the world. With our unique air-care coreand develop new businesses that solve social issues related to nursing care, healthcare, pet care, andtechnologies, we pursue not only deodorization, but also pleasant air for people in new ﬁelds such as healthfemtech. As the company name suggests, we will build a governance system that continues to question

care and wellness to become a comprehensive air business group by breaking away from being just awhether we can continue to exist forever as a company that is of service (SERVICE) to society and trusted

manufacturer of daily necessities.

(TRUST).

We would like to ask for your continued support in the future.

For the ﬁrst time, we invited outside experts to hold a dialogue to clarify our vision for the future and properly
review the current situation.

09

|

About
S.T. CORPORATION

MessageOur Value
Creation|

Business
Activities|

Sustainability
Activities|

Governance|

Financial and
Non-ﬁnancial Information|

Corporate
Information|

Integrated
Report 2022

Engagement of Stakeholders

To discuss and identify important issues for sustainability

We conduct essential
sustainability activities surely
without being impatient.
(From left in the back) Executive Oﬃcer Hideki Naito, Mr. Sakon Kuramoto,Outside Director Shinzo Maeda, Managing Executive Oﬃcer Seiichi Nishida(From left in the front) Outside Director Hiroko Noda, President Takako Suzuki,
Mr. Ryuta Uozumi, Ms. Tomomi Fukuda

10

|

About
S.T. CORPORATION

MessageOur Value
Creation|

Business
Activities|

Sustainability
Activities|

GovernanceDiscussing Important Issues withIntellectuals

S.T. has been putting importance on the voices of customers, but inorder to carry out sustainability-oriented management in an essential
manner, we accurately understood the voices of stakeholders regarding material issues on sustainability and reﬂected them in ourbusiness administration, and held dialogue with intellectuals for the
purpose of listening to their expectations.
As external intellectuals, we invited Mr. Ryuta Uozumi, representativeof Uozumi Sustainability Lab, who possesses plenty of knowledge
and experience regarding the environment and sustainability-oriented management, Mr. Sakon Kuramoto, who specializes in humanrights and compliance with laws and a lawyer of Orrick Tokyo Law
Oﬃce-Foreign Law Joint Oﬃce, and Ms. Tomomi Fukuda, who is asenior vice president of Lazard Japan Asset Management, which
actively promotes the improvement in corporate value from the
aspects of fundamentals and ESG as an investor, and listened to their

Managing Executive Oﬃcer Seiichi Nishida

opinions about the material issues of our company.
From our company, the dialogue was attended by President Suzuki,
the managing executive oﬃcer Yonemoto (in charge of the businessand R&D divisions) and the executive oﬃcer Naito (in charge of the
manufacturing division), the outside director Maeda, and the outside
director Noda, and we actively debated while considering theopinions of the intellectuals.

|

Financial and
Non-ﬁnancial Information|

Corporate
Information|

Integrated
Report 2022

activities, the provision of products, emissions, etc. to see the entire picture(material balance), and then managing and improving them withsystems. Furthermore, they pointed out the importance of initiatives
tailored to our business characteristics, and gave advice about the life
cycle assessment (LCA) of products and the enhancement of
measures for recycling resources, including plastics of products andcontainers, to cope with climate change.
From the viewpoint of human rights, they explained that the trend of
establishing legal systems for the management of human rights andresponsible procurement is accelerating, so there is a risk that insuﬃcient adaptation will have stakeholders think that our company
worsens the problem with human rights, investors stop investing in
our company and clients will stop procuring products from ourcompany. The management of human rights and responsible
procurement are material issues for manufacturers, so they advised
us that we should formulate policies for them and establish systems
for them urgently.
From the viewpoint of investors, they explained that the creation of
corporate value signiﬁcantly correlates with ESG, and pointed out theimportance of the fact that designing strategies based on forecasts
and tightening governance constitute a story. In addition, theymentioned that it is essential to grasp the changes in society without
fail, consider how we should utilize opportunities arising out of thechanges in business, control risks arising out of the changes, and fulﬁll
our accountability properly.

Opinions about Material Issues thatShould be Addressed

They gave us warm encouraging words, such as “I hope that S.T. willOn the day of the dialogue, we received their opinions while propos-

capability of developing unique products (innovation), which is youring some material issues discussed and raised by S.T. Group. (Seeforte,” “I hope that you will introduce user-friendly and environmen-

Charts 1 and 2 on the following page.)tally-friendly products to many consumers via easy-to-understandFirstly, from the environmental perspective, the intellectuals gave advice

TV commercials, and emphasize the importance of the environment

about the importance of enriching the foundation for environment-con-and sustainability,” and “I hope that you will proceed with essential

scious management. In detail, they pointed out the importance of globally

activities appropriately and surely, without being impatient,” express-

grasping the consumption of resources and energy in our businessing their expectations toward S.T. Group.

create new products and business models that can reduce CO2
emissions and the consumption of fossil resources, by utilizing your

11

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About
S.T. CORPORATION[Chart 1] Process of extracting material issues

Step1

To extract social issues with reference
to ISO26000, GRI Standards, SDGs, etc.

Step2

To evaluate them from the viewpoints of social
demand and importance for our company

Step3

To hold dialogue with intellectuals in order tolisten to voices inside and outside our company

Step4

The board of directors adopts material issues,
and makes adjustments if necessary.

MessageOur Value
Creation|

Business
Activities|

Sustainability
Activities|

Governance

Based on the opinions of intellectuals we received through that
dialogue, we had discussions in house and determined material
issues for S.T. Group as shown in the right chart (See Chart 3). From
now on, we will design necessary policies, strategies, and plans foraddressing these material issues, and make company-wide eﬀorts.
We may revise these material issues if necessary, according to theprogress of our engagement and activities, changes in the businessenvironment, etc. and update them according to the changes in social
demand.

To Share Voices Outside our Company,
and Engage in Business Administration

That dialogue reminded us of the importance of various themes forsustainability, and updated our recognition of opportunities and risks
for discussing long-term management strategies. We were also able
to share them with the president, outside directors, and executive[Chart 2] Policy for evaluating material issues anddetermining their priorities

oﬃcers in charge of respective divisions. The management policy of
S.T. Group for this term is the ﬁrst year of the reborn S.T. (the development of a base for growth). The recognition we shared this time
became an important foundation for S.T. Group to actively carry out
business activities as a guidepost.

Social expectations and demands

S.T. Group will take advantage of the changes of the times as new

Material issues

for sustainability

growth opportunities and develop governance systems for responding to new management risks arising out of the changes, based on thevoices of intellectuals (stakeholders), and achieve the sustainable
development and improve the corporate value of S.T. by contributing
to society in a sustainable manner.
We would appreciate your continued guidance and encouragement.

Materiality for our company|

Financial and
Non-ﬁnancial Information|

Corporate
Information|

Integrated
Report 2022

[Chart 3] Identiﬁed material issues
Responding to changes in consumer values and lifestyles
Adapting to a decarbonized society
Coping with the depletion of resources andadapting to the circular economy
Dealing with business risks related to human rights
Building a working environment where diverse employees
can work with satisfaction and peace of mind
Strengthening ESG risk management in the supply chain
Responding to social demand beyond laws and regulations

12

|

About
S.T. CORPORATION|

MessageOur Value
Creation

Business
Activities|

Sustainability
Activities|

Governance|

Financial and
Non-ﬁnancial Information|

Corporate
Information|

Integrated
Report 2022

Creation of Value of S.T.
Value Provided so Far

Value We Will Provide

Since the inauguration of business, S.T. Group has been brining comfort and richness to the daily lives ofS.T. Group will recognize such changes in the times and society as opportunities, oﬀer new value and create

people by providing unique products, such as the mothprooﬁng agents “Mushuda,” the deodorizer and air

new markets with the keywords: “new air business models,” “response to structural changes in society,” and “

freshener “Shoshu-Riki,” the disposable warmer “Onpax,” the dehumidiﬁer “Drypet,” the deodorizer “Dashu-Tan,”acceleration of globalization” by utilizing our strengths, including our unique air-care core technologies,

and the mothprooﬁng agents for rice storage “Kome-Touban,” to adapt to the changes in residential environ-product development capacity, on-site operation ability, and communication skills, and bring comfort andments and solve trouble in daily lives.

richness to “society and the daily lives of people.”

The market of daily necessities is a stable market for daily living, which lasts as long as people live. The

In the development of new products, we create new value with “Clear Forest,” which is produced from natural

Japanese population is declining, but our products are used in various rooms and places, and the total

tree components. Shifting from the conventional solution of “removing smells,” we have created new value

number of households in Japan is still increasing, so the market is healthy. The utilization rate of our products

called “functional air care,” by harnessing the power of natural trees, to solve social issues of modern people,

in the market of deodorizers and air fresheners, which is the mainstay, is about 60%, so we believe that there

such as allergies to pollen, etc. and stress. We also actively engage in the development of business models

remains room for business expansion.

and ecosystems based on new models beyond the boundaries of markets or industries.
In terms of risks, we make eﬀorts to reduce CO2 emissions to adapt to a decarbonized society, deal with thedepletion of resources, adapt to the circular economy, cope with business risks related to human rights, anddevelop a working environment in which employees can have diversity, worthwhile jobs, and peace of mind.

Changes in the Business Environment

S.T. Group will achieve sustainable growth and improve our corporate value, by contributing to the environ-

Nowadays, we see such words as “sustainability” and “SDGs” in newspapers or the like every day. In themarket of daily necessities, too, we need to reduce CO2 emissions, deal with the depletion of resources, andment and society in a sustainable manner and bringing comfort and richness to “society and daily lives ofpeople.”adapt to the circular economy. Furthermore, our workstyles have changed drastically due to COVID-19,
producing signiﬁcant eﬀects on the purchase behavior, values, and lifestyles of consumers.

MushudaShoshu-Riki

Onpax

DrypetTo Bring Comfort and Richness to
the Daily Lives of People

Dashu-Tan

Kome-Touban

MoriLabo(Measures against pollen)

S.T. Pet(Toilet for cats)

To Bring Comfort and Richness to“Society and Daily Lives of People”

13

|

About
S.T. CORPORATION|

Our Value
Creation

MessageBusiness
Activities|

Sustainability
Activities|

Governance|

Financial and
Non-ﬁnancial Information|

Corporate
Information|

Integrated
Report 2022

Value Creation Process
Input

Value Creation Activities

OutputOutcomeSocial and Related CapitalBusiness Activities

Product

BeneﬁtFavorability Ranking of Companies: 168th
Operating income: 3,945 million yen
Stock price: 1,955 yen

Manufacturing and selling products that makelife more comfortable using our productdevelopment capabilities, on-site capabilities, and communication capabilities* All values as of the end of March 2021

Human Capital
Number of employees: 953 (consolidated)
Number of employees: S.T. Group (in Japan) 757
Number of employees:
570 (including 209 women)Non-regular employment:
187 people (including 138 women)

Direction of GrowthInnovation

Changes in Demographic Structures

Global Trends

Air Care: Sales of 20.0 billion yen
Cloth Care: Sales of 8.2 billion yen
Thermal Care: Sales of 4.4 billion yen
Hand Care: Sales of 5.8 billion yen
Humidity Care: Sales of 2.8 billion yen
Home Care: Sales of 4.2 billion yen

Our unique
air-care core technologies
eliminate discomfort
in life and make you
feel comfortable.

* The number of employees, including females, and the number of nonregular employees, including females are those of S.T. Group (in Japan).

Natural Capital

Sustainability

Environmental andSocial Impact

Initiatives for climate change, resources
recycling, occupational health and safety,
work-life balance, diversity and inclusion,
human resources development, compliance, etc.

Total CO2 emissions (Scopes 1 and 2):
2,892 t-CO2
Total weight of waste: 1,393 tons
Total annual working hours per person:
1,744 hours

Fuel usage: 14,718 GJ
Electricity consumption:
6,500 thousand kWh
Water consumption: 45,054t* All of them are for ST Group (in Japan)

Financial CapitalFree cash ﬂow: 2,859 million yen
Interest-bearing debt: 413 million yen
Equity ratio: 70.4%* Free cash ﬂow is the value at the end of the ﬁscal year ended March 2021.

* All of them are for ST Group (in Japan).

Favorability ranking of companies: 138th
Operating income: 3,251 million yen
Stock price: 1,527 yen

14

|

About
S.T. CORPORATION|

Our Value
Creation

MessageBusiness
Activities|

Sustainability
Activities|

Governance|

Financial and
Non-ﬁnancial Information|

Corporate
Information|

Integrated
Report 2022

Material Issues and Primary Measures
Material Issues
Responding to changes in consumer values
and lifestyles

Primary Measures
Business

Adapting to a decarbonized society
Coping with the depletion of resources andadapting to the circular economy

Environment

Dealing with business risks related to human rights

Building a working environment where
diverse employees can work withSocietysatisfaction and peace of mind

Strengthening ESG risk management in the supply chain

Responding to social demand beyond laws
and regulations

Management

・Strengthening product development using Clear Forest, our unique air-care core technology that is natural and has functional properties
・Strengthening development of business models and ecosystems through new models

Climate change

・Greenhouse gas reduction targets and the reconstruction of the management system

Resources recycling

・Promotion of initiatives for resources-saving and plastic-saving designs

Human rights

・Development of policies and management systems for human rights

Occupational health and safety

・Reduction of long working hours

Work-life balance

・Improving the rate of taking paid leave

Diversity and inclusion

・Improving various systems that women can use, and strengthen the promotion of
the creation of a suitable working environment

Human resources development
and skill development

・Strengthening of human resources development to create and execute new businesses

Responsible procurement

・Development of policies and management systems for responsible procurement

Stakeholder engagement

・Establishment of a promotion system that reﬂects the voices of stakeholders in management
Dialogue with Experts, Integrated Reports

15

|

About
S.T. CORPORATION|

Message|Our Value
Creation

Business
Activities

Sustainability
Activities|

Governance|

Financial and
Non-ﬁnancial Information|

Corporate
Information

Integrated
Report 2022|

Activities of Domestic Business
Air Care (Deodorizers and Air Freshener)

Cloth Care (Mothprooﬁng Agents)

Thermal Care (Disposable Warmers)【Market share】Deodorizers and Air Freshener: 3rd place(24%), Deodorant: 1st place (81%)
【Business Characteristics and Strengths】This is our primary business, which accounts for about 40% of our sales,
and is expected to grow in the future. We have highly
original brands, such as our largest mega brand, Shoshu-Riki,and Dashu-Tan, which is based on the power of charcoal todeodorize.
【Market environment】The deodorizers and air freshener
market is growing. High value-added products are on therise, and further growth can be expected by stimulating
the market.
【Overview of the ﬁscal year under review and future strategies】In the ﬁscal year under review, sales were 19.9
billion yen. Sales of the high value-added product, Shoshu-Riki
Premium Aroma, were strong, and the new product,
Shoshu-Riki DEOX, also contributed to sales. In thecurrent ﬁscal year, we will continue to leverage thestrengths of our core brands and work to revitalize themarket with new products.

【Market share】Mothprooﬁng Agents: No. 1 (52%)
【Business Characteristics and Strengths】This businesshas been part of our company since its founding, and it is
the most important business along with the Air Carebusiness. We own trusted top brands such as Mushuda andNeopara, which protect your valuable clothing from being
eaten by insects. We are also entering the adjacent market,
the tick-repellent market.
【Market environment】The mothprooﬁng agents market isstable. In the future, the key will be to respond to diverse
needs, such as changes in storage styles. In 2021, thedemand due to people staying at home had settled down,
becoming the same as the average year. The adjacenttick-repellent market is expanding.
【Overview of the ﬁscal year under review and future strategies】In the ﬁscal year under review, sales were 8.2 billion
yen as the 2021 spring season remained at the same level
as the average year.
This term, we will work to expand sales with products that
support diversifying storage styles.

【Market share】Disposable Warmers: 3rd place (17%)
【Business Characteristics and Strengths】As a winter product,it also serves as a sales ﬂoor control in conjunction withspring and autumn mothprooﬁng agents. We own brands
such as Onpax and the Thermal Care brand On Style.
【Market environment】The disposable warmer market ishighly impacted by climate change. Thus, it is diﬃcult
to diﬀerentiate our products in this market. In the
future, we have high expectations for new ﬁelds andnew markets that make use of thermal technology.
【Overview of the ﬁscal year under review and future strategies】During the winter season of the ﬁscal year underreview, sales were 4.3 billion yen due to the cold weather
since the year-end and the New Year holidays. In thecurrent ﬁscal year, we will propose new added value
and usage scenarios to consumers in response tochanges in living environments and lifestyles in aneﬀort to revitalize the market.

【Sales trend】【Sales trend】【Sales trend】(billion yen)

25
20

20.5

(billion yen)

20.8

21.1

21.4

10

20.0

6

10

4

5

2

2018/3

2019/32020/32021/32022/3

9.1

9.3

0

6.4

6

9.4

5.1

8.2

8

15

0

(billion yen)

9.3

4.3

4.5

4.4

2020/32021/32022/34

2

2018/3

2019/32020/32021/32022/30

2018/3

2019/3* The new accounting standards have been applied since the ﬁscal year ended March 2022.

16

|

About
S.T. CORPORATION|

Message

Hand Care (Household Gloves)|

Our Value
Creation

Business
Activities

Sustainability
Activities|

Governance

Humidity Care (Dehumidiﬁers)|

Financial and
Non-ﬁnancial Information|

Corporate
Information

Integrated
Report 2022|

Home Care (Cleaners and Others)【Market share】Household Gloves: 2nd place (21%)
【Business Characteristics and Strengths】 This businesshas a long history of 60 years, like the Cloth Care Business.
Our product lineup includes “Family,” household gloves,“Modelobe,” industrial-use gloves, and gloves whoseﬁnger parts have been reinforced to prevent ruptures.
【Market environment】The market of gloves saw a decline
in sales of gloves for both household use and professionaluse, as the public awareness of hygiene against COVID-19
has been normalized and prices ﬂuctuated. It is important
to enhance functions and propose added value while
improving usability.
【Overview of the ﬁscal year under review and future strategies】In the ﬁscal year under review, the demand for gloves
was somewhat sluggish due to the weakening of the publicawareness of hygiene, so sales were 5.8 billion yen. Thisterm, we will keep strengthening and developing ourbrands by proposing high value-added products.

【Market share】Dehumidiﬁers: No.1 (34%)
【Business Characteristics and Strengths】Since the releaseof “Drypet” in 1981, this business has always beenleading the market. Its enriched product lineup includes“Drypet,” the primary brand, “Bincho-Tan Drypet,” which
has the deodorizing function as well as the dehumidifying one, reﬁllable ones, and sheet-shaped ones.
【Market environment】 The market of dehumidiﬁers is
expanding, and in this market, it is diﬃcult to diﬀerentiate
products and competition is ﬁerce. From now on, the key
will be to propose added value, such as new purposes ofuse and new functions.
【Overview of the ﬁscal year under review and future strategies】In the ﬁscal year under review, sales were 2.8 billion
yen, due to the reactionary decline from the prolonged
rainy season in the previous term. This term, we will try
to vitalize the market by proposing high value-added
products and saving of plastics.

【Business Characteristics and Strengths】In this market, we
handle niche cleaners and new products under development. Our product lineup includes unique ones, suchas cleaners of “Senjo-Riki” and “Kome-Touban,” mothprooﬁng agents for rice storage.
【Market environment】The niche market of cleaners andthe market of mothprooﬁng agents for rice storage arehealthy, thanks to the continuous demand for hygiene
and eating at home due to COVID-19.
【Overview of the ﬁscal year under review and future strategies】In the ﬁscal year under review, “Kome-Touban” andthe washing tub cleaner “Senjo-Riki” performed well thanks
to the demand for hygiene and eating at home, and thenew product “Shinsen-Ban,” too, contributed, so sales were
4.2 billion yen. This term, we will continue our endeavors in
new ﬁelds for further growth.

【Sales trend】【Sales trend】【Sales trend】(billion yen)(billion yen)

8

6

6.9
5.6

5.8

6

5.8

5.8

4

4

3.0

3.0

3.3

3.4

4

2018/3

2019/32020/32021/32022/3

0

3.9

3.9

3.8

4.1

2019/32020/32021/3

4.2

2.8

2

2

0

(billion yen)

62

2018/3

2019/32020/32021/32022/30

2018/32022/3* The new accounting standards have been applied since the ﬁscal year ended March 2022.

17

|

About
S.T. CORPORATION|

Message|Our Value
Creation

Business
Activities

Sustainability
Activities|

Governance|

Financial and
Non-ﬁnancial Information|

Corporate
Information|

Integrated
Report 2022

Activities of Overseas and New Businesses
Overseas Business

Globalization is one of the key growth strategies consideredby S.T. Group. Although the demand from foreign visitors toJapan has recently plummeted due to COVID-19, the trustin Japanese products from around the world remains
strong, and we are keen to globally expand our know-how
and new technologies we have cultivated by resolvingsocial concerns in Japan.
In the ﬁscal year under review, we continued strategical structural reforms. Regarding the situations in main regions, inthe U.S., demand for gloves decreased as the awareness ofhygiene against COVID-19 subsided, while in Asia, demandfor Air Care products showed a strong growth in Thailand,
and in China, a new ﬂagship EC store was established to
distribute Air Care and Home Care products, which resulted
in consolidated overseas sales of 3.1 billion yen (Overseas
sales ratio: 6.5%).
Under this new structure, we will focus on Asia as a target
region, and Air Care products as a core product category,with the goal to become a global "comprehensive air
business group.”

Promotion of Capital and Business
Alliances

Promoting capital and business alliances is another key growthstrategy, indispensable to constructing a stable management foundation that will not be aﬀected by the external
environment.
S.T. Group signed tie-up contracts with FUMAKILLA LIMITED in 2010 and with NS FaFa Japan Co. Ltd. in 2012. We
aspire to improve mutual development and proﬁtability by
applying the three companiesʼ diﬀerent advantages in B2C
and B2B.
The main objectives of the alliances are to conduct joint
R&D by utilizing the three companiesʼ research technologies and development know-how in terms of development;
to share regional channels, support sales promotion andexert joint eﬀorts in terms of sales; to reduce costs by
sharing production facilities and materials in terms of procurement; and to cut costs by sharing logistics infrastructure interms of logistics.
We will continue to promote capital and business alliancesthat will contribute to a global “comprehensive air businessgroup" with the aim to attain a market capitalization of 100
billion yen.

【Trends in Overseas Sales・Overseas Sales Ratio】(billion yen)

4

7.2

3.5

7.8

3.7

3

6.5
6.1

6.0

2.9

2.9

2020/32021/3

3.1

(%)

6

0

2
1
0

2018/3

2019/32022/3Press Conference on the Capital and Business Alliance (January 2012)

New Business Development

Finally, development of new businesses is another key
growth strategy for us as a manufacturer.
Our group has been engaged in developing new ﬁelds andmarkets by leveraging our unique air-care core technologies.
We have been handling "MoriLabo," a series of anti-pollen
products produced by the natural tree component “Clear
Forest,” and "S.T. Pet," which solves the problem of petsʼ
fecal odors. In the B2B market, we have developed "AirForest," deodorant mist for clothing and fabrics for guest
rooms of hotels and Japanese-style inns, “Dr. CLEAN+,”disinfectant solvents for institutional use, and so on.
As the next step, under our new business development
scheme, we intend to develop new commercialization processes,
innovate fresh business models, and actively collaborate
with external parties to seek inroads into newer eco-systems.

18

|

About
S.T. CORPORATION|

Message|Our Value
Creation|

Business
Activities

Sustainability
Activities

Governance|

Financial and
Non-ﬁnancial Information|

Corporate
Information|

Integrated
Report 2022

Environmental Activities
Initiatives for Coping with Climate Change

Initiatives for Recycling Resources

S.T. Group regards response to climate change as an important issue, and is working to reduce CO2 emissions

In order to conserve limited resources as a manufacturer that produces and sells products that are familiar tothrough our business activities.

customersʼ daily lives, S.T. Group is addressing the plastic problem by promoting the 4Rs (Reduce, Reuse,

Regarding eﬀorts to reduce CO2 emissions, we are promoting energy conservation in production facilities andRecycle, and Renewable) in containers and packaging. Approximately 12,000 t/year of plastic is used in thebuilding equipment on the manufacturing side, while promoting the purchase of electricity derived fromproducts sold by our group, and we are working to reduce the use of petroleum-derived plastics by revising

renewable energy at production sites and oﬃces. 32% of the entire domestic company group has switched

product designs, increasing the number of reﬁllable products, and promoting the use of recycled plastics andto electricity derived from renewable energy as of March 31, 2022. As for company vehicles such as sales

biomass plastics. In addition, as a measure for discarded plastics that inevitably remain after use, we joined

vehicles, we are promoting the use of highly energy-eﬃcient hybrid vehicles. In terms of transportation, we

demonstration projects for the "Reuse" and "Recycle" system.

are propelling a modal shift from truck transportation to railway and ship transportation, which have a lower

As an initiative for “Reduce” and “Renewable” (switch to renewable materials such as those derived fromenvironmental impact. S.T. corporation acquired “Eco-Ship Mark” certiﬁcation in 2008, and its factory inplants), S.T. Corporation has established its own environmentally friendly standards for container packaging

Kyushu acquired “Eco Rail Mark” certiﬁcation in 2015. Regarding truck transportation, we are improving

and product design, and products that meet these standards indicate the "Eco for everyone" mark.

loading eﬃciency by revising standards for the size of truck cargo boxes, promoting direct shipments fromfactories to warehouses, and joint shipments with other companies.
From this ﬁscal year, we calculate CO2 emissions based on the Greenhouse Gas Protocol. We are also revising
CO2 emission reduction targets based on the same standards, and plan to proceed with Scope 3 calculations.

Total CO2 emissions (Scopes 1 and 2)
Scope1
4,039(t-CO 2)

4000

3,619

3,500

2000

*The subject organization is S.T. Group (domestic).
2,892

2,592

2,523

3,067

2,908

1,914

*Total CO2 emissions mean the sum of Scopes 1 and 2.
*Scope 2 emissions was calculated by multiplying the consump-

1,027

977

972

956

978

2018/3

2019/32020/32021/32022/3its content being 10% or higher.

Recycled plastics are used
for “Eco for everyone”
containers and packaging,with their weight percentage
being 10% or higher.

We participate in the "Loop"* system, which "reuses" general consumer goods such as containers by replacing them with highly durable ones that can be used repeatedly. The “Loop” product containers are made oftransparent glass instead of plastics, and are sold at Aeon stores.

emission coeﬃcient for each electric power menu and multiplying*Loop is a recycling shopping platform developed by Loop Japan LLC.

coeﬃcient and then adding up them.

Response to the Task Force on Climate-related Financial Disclosures (TCFD)
Based on the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD), S.T.
Group is working to address climate change issues. Regarding climate-related impacts (risks andopportunities) on our company, scenario analysis (qualitative evaluation) was conducted for the
1.5-2°
C scenario and the 4°
C scenario. We will continue to discuss measures to respond to risks andopportunities related to climate-related issues, and promote information disclosure in accordance with
the TCFD recommendations.

“Shoshu-Riki Deodorizer for Toilet,” withtion of electric power from renewable energy by the adjusted
the other power consumption by the national average emission

1000

0

“Shoshu-Riki Deodorizer for Room” andScope2

3,864

3000

Examples of products with the “Eco for everyone” mark
Recycled plastics are used for the bottles ofFrom July to December 2021, we engaged in the "MEGURU BOX" project, a demonstration experiment forcollecting used plastics in Kitakyushu City, Fukuoka Prefecture. Kitakyushu City and more than 10 companies/organizations worked together to collect used plastic containers from supermarkets and public facilities
in Kitakyushu City, and worked to demonstrate a system for recycling.

19

|

About
S.T. CORPORATION|

Message|Our Value
Creation|

Business
Activities

Sustainability
Activities

Governance

Financial and
Non-ﬁnancial Information|

Corporate
Information||

Integrated
Report 2022

Social Activities
Initiatives for the Health and Occupational Safety of
Employees

Initiatives for Diversity, Inclusion, and Work-life Balance

We are hiring experienced workers, to cultivate new businesses and achieve sustainable growth, so thatSo that all employees can work while being healthy in mind and body, we encourage them to undergo adiverse personnel can ﬂourish. In addition, to promote female employees to managerial posts, we held

health checkup regularly, with the aim of having all employees undergo it. In addition to the periodic heathtraining for female employees in their 20s to 40s twice in FY 2021.

checkup, we recommend employees aged 35 years or older to receive a complete health checkup and pay
expenses for it, for the purpose of detecting and treating health risks early. Furthermore, we recommend
2018/3

2019/32020/32021/32022/3

Ratio of female managers [%]

8.3

11.3

1０.９

10.2

11.5

Ratio of mid-career workers [%]

40.9

16.0

20.７

28.6

26.7

No. of females

2

0

1

2

3

No. of foreign nationals

1

0

0

1

0

No. of managers

1

1

0

5

5

7

9

14

15

13

employees to undergo medical examinations for breast cancer, cervical cancer, prostate cancer, and brain

Accounting period

disorders, and pay expenses for them. We also hold meetings with industrial doctors and public health nurses
and lectures, and established “S.T. Hotline for Health,” in which external psychologists listen to the worries of
employees, their spouses and dependents, in order to maintain their mental and physical health and prevent
disorders. As measures for breaking free from smoking, we prohibited smoking during working hours in 2018,
and prohibited smoking inside our buildings in 2022.
We make group-wide eﬀorts to strengthen the occupational safety management system, and regularly
conduct safety management inspection at our factories in Japan (Fukushima, Saitama, Kyushu, and Tochigi)
and Thailand and major outsourceesʼ factories in Japan, to appropriately operate our safety and hygiene

No. of employees with disabilities*The subject organization of S.T. Group (in Japan)

control systems and prevent occupational accidents. In Thai factories, where it is diﬃcult to directly inspectthem frequently, we utilize an online conference system. At the “STR-MP” meeting, which is attended by the

In order to support employees in childcare and nursing care while working, we have established systems forfactory staﬀ in Japan and Thailand, they exchange opinions about occupational safety and reﬂect them inchildcare leave, shortened working hours for childcare, and ﬂextime, as childcare-related systems in line withoccupational safety activities in each factory.

action plans in accordance with the law regarding support for development of the next generation (thenext-generation law) and the law regarding the empowerment of women (the women empowerment law). In

Initiatives for Personnel Development

In the ﬁscal year under review, we conducted a leadership training program (5 times a year) for employees
in their 20s to 50s before promoting them to managerial posts. This term, we carried out the “next-generation transformation program (NEXT)” for selection and execution, while promoting the participation of2021, all female employees took a childcare leave. Two male employees took leaves for their spousesʼ childbirthand childcare. 100% of the female employees who gave birth to a child resumed work one year after thechildbirth (no one resigned). We will keep developing a comfortable workplace in which employees can deal
with the progress of their life stages.

employees in their 20s and 30s. In this program, participants receive lectures about business administration and commercialization from external lecturers, design business ideas, propose them to the management, and then aim to commercialize the ideas approved through screening.

ChildbirthChildcare

Leaves before and after childbirth

6 weeks before childbirth and 8 weeks after childbirthSpecial leave for an employeeʼswife giving birth to a child

2 days (paid)Childcare leave

Until a child turns 3 years old

Working hours for childcare

It is possible to shorten working hours by 1.5 hours per day until a child enters the fourth year ofelementary school.
It is possible to use the staggered work shift until a child enters the ﬁrst year of junior high school.

Exemption from overtime work

We exempt employees who have a preschool child from overtime work, if they apply.

Leave for caring for injured orsick children

It is possible to take this leave in units of hours for 5 days per year if the number of suchchildren is 1 or for 10 days per year if the number of such children is 2 or more.

20

|

About
S.T. CORPORATION|

Message|Our Value
Creation|

Business
Activities

Commitment to Customers

Sustainability
Activities

Governance|

Financial and
Non-ﬁnancial Information|

Corporate
Information|

Integrated
Report 2022

Initiatives for Local Communities＜Quality assurance, security and safety initiatives＞＜Efforts for educational practice for local children＞

with "appropriate quality" and "safe and secure" products. At each stage of planning, designing, and producing

learning, and endeavor to draw their interest in the work of manufacturers and science through hands-on

products, we check the safety, eﬀectiveness, environmental and legal compliance of "raw materials, formula-experience of manufacturing.

tions (contents), containers, packaging, labeling, etc."

Additionally, we held a summer vacation event for elementary school students in Shinjuku-ku, where theyAt the stage of sale to customers, the Customer First Promotion Division (Customer Consultation Center,

held a hands-on course for producing deodorants.

Quality Assurance Section) collects and analyzes opinions and information from customers regarding(Organizer: The Shinjuku Foundation for Creation of Future)

Our corporate group plans, designs, manufactures, and sells products with the aim of providing customers

We accept elementary and junior high school students from neighboring areas for workplace experience

products, and works to improve quality. Furthermore, in case a problem occurs in our products, we haveestablished a system for responding to accidents and damage, disclosing information to the governmentand customers, recalling products, and preventing recurrence.
In addition, the mothprooﬁng agents production lines of our factories in Fukushima, Saitama, and Kyushu＜Efforts to support cultural activities＞

Since 1998, as a cultural support activity, we have been hosting "musicals with free admission to all seats"

have obtained "ISO9001" certiﬁcation, and the factory in Tochigi (S.T. MYCOAL) has obtained "ISO9001"

throughout Japan. In 2020, the performance was unavoidably cancelled due to the spread of the novel coronavi-

and "ISO13485."

rus infection. However, in 2021, the performance was resumed with a limit on the number of people andthorough infection control measures at the venue. In 2022, performances were held in six cities, excluding
Miyagi and Hokkaido, and a large audience was impressed.

＜System to respond to customer feedback＞

In order to use the inquiries and questions we receive from customers to improve products and identify andrespond to issues, we report them to the management and related departments as "HOT VOICE REPORT."
This ﬁscal year, we held a "Meeting to Experience Customersʼ Feedback" at the Customer Service Center,＜Efforts for collaboration and support with local communities＞

During July of this term, in order to collaborate with companies working on forest maintenance, we signed

where the management and employees of related departments directly listen to customers' inquiries anda “forest development agreement of companies in Hokkaido” with Hokkaido Government Kushiro General

opinions. In addition, we have participated in a telephone reception contest sponsored by the Users Associ-Subprefectural Bureau, and Hokuto Co., Ltd, which runs a forest maintenance business and whose headquar-

ation, and won the award for excellent performance in 2021, and the award for outstanding performanceters is located in Kushiro City, Hokkaido. We will acquire the naming rights for the maintenance area withinin 2022 in the regional tournament held in Shinjuku-ku, Tokyo, having won an award for ﬁve consecutive

the forest area, which is owned by the Hokkaido government and is under the management of Kushiro City,

years. Furthermore, in ﬁscal 2022, we participated in the national competition for the ﬁrst time. We are

and will plant Sakhalin ﬁr saplings using donations from our company as a ﬁnancial resource to maintainalways endeavoring to improve customer satisfaction and service quality.

the forest. In October, we invited S.T. CORPORATIONʼs employees and local elementary school students toplant trees, and held a tree education class to learn about economic forest management and the utilizationand functions of Sakhalin ﬁrs.

＜Dissemination of useful information for daily life＞

For our customers, we disseminate information that makes everyday life a little
more convenient and enjoyable through our owned media “Kurashi ni Plus.” Under
the supervision of experts, we provide information and disclose guidebooks about
useful information and countermeasures for everyday-life trouble, such as "countermeasures against ticks," "school disinfection and hygiene measures," and "preventive measures for hay fever."New normal guide to preventive
measures for hay fever, ﬁrm guard
against COVID-19 and pollen

Signing ceremony for a forest development agreement ofcompanies in Hokkaido

Tree planting by S.T. CORPORATIONʼs employees andlocal elementary school students

21

|

About
S.T. CORPORATION|

Message|Our Value
Creation|

Business
Activities|

Sustainability
Activities

Governance

Financial and
Non-ﬁnancial Information|

Corporate
Information|

Integrated
Report 2022

Eﬀorts for GovernanceCompliance
Policy for ComplianceInternal Control
For internal control, we promote system development in order to secure the adequacy of organizational

As for compliance, S. T. CORPORATION observes not only laws, and regulations but also internal andbusiness operation. In order to accomplish organizational goals eﬀectively, eﬃciently, and properly, opinions

external rules, ethics, and social norms; fulﬁlls social corporate responsibilities by putting its management

inside and outside the company are constantly grasped and improvements are continuously made, whilephilosophy and codes of conduct into practice; and strives to maintain and improve the trust of stakehold-organizing rules and business processes.

ers.

Compliance System

S. T. CORPORATION established the compliance committee, to report its resolutions to the representative
executive oﬃcer, the board of executive oﬃcers, and related groups, and its activities to the audit committee.

Risk Management
Risks S. T. Bears

It is one of key focuses of the board and senior management to recognize risks, grasp the current status ofeach risk, and manage them properly and such management of risk is indispensable in order to conduct

In-company Educational Activities

We carry out the following activities to further raise employeesʼ awareness of compliance.

businesses successfully in a long period of time. The major risks S. T. faces are the eﬀects of material prices,
the inﬂuences of natural disasters and international situations on production, the uncertainty of sales due
to weathers, and new businesses.

Risk Management System

Enact a code of conduct and a whistle-blowing center.
Upload the collection of compliance-related cases to the Intranet.
Distribute an email magazine and news for education to every oﬃce of the company.
(send once a month for each)

For risk management, S. T. CORPORATION promotes the development of systems for preventing various
management risks and minimizing possible damages. We established rules for risk management andorganized the risk management committee which covers the entire group including all subsidiaries,
in order to put in place the risk management system and set rules for how to react to events. The risk
management committee reports risk management activities to the representative executive oﬃcer, theexecutive oﬃcer meeting, and the audit committee, and the audit group checks to ensure these systems
work eﬀectively.

Conduct company-wide questionnaire survey. (once a year)
Conduct company-wide compliance test for self-checking. (twice a year)

Production of a Business Continuity Plan (BCP)

S. T. CORPORATION has produced action plans for responding to disaster, etc., and business continuity
plans, including emergency drills, from the viewpoint of social responsibilities.

22

|

About
S.T. CORPORATION|

Message|Our Value
Creation|

Business
Activities|

Sustainability
Activities

Governance

Financial and
Non-ﬁnancial Information|

Corporate
Information|

Integrated
Report 2022

Eﬀorts for Corporate GovernanceApproach to Corporate GovernanceOur corporate group aims for sustainable synergistic development of enterprises and society. We believethat corporate governance is a “system to supervise” it. We recognize that it is important to establish anenvironment to ensure transparency and fairness in management, support proactive decision-making andappropriate disclosure of information.
We recognize that shareholders, society and the environment entrust us with valuable managerial resources, and aim to realize the sustainable growth of society and the environment and create corporate value inthe medium to long terms, in cooperation with stakeholders, and will fulﬁll our accountability.

Eﬀorts to Improve Corporate Governance

In June 2004, in order to enhance oversight function of the Board of Directors and the quality of management and enrich management practices such as prompt decision-making and agile execution of operation,
the Company was reorganized into a company with committees (currently company with three committees), which is more transparent and fair and in which outside directors account for the majority of board
members. In June 2008, a female director was appointed for the ﬁrst time, and in June 2022, female

Overview of Corporate Governance(Fiscal Year Ended March 2022)

Governance Type

Company with a nomination committee, etc.

Number of Board Member

10

Number of Outside Directors

5
（50％）

Number of Independent
Outside Directors

5 (ﬁled as designated by Tokyo Stock Exchange)

Board Diversity

3 female Directors (30%)

Number of Board Meetings
Held per Year

9 times

Average Attendance Rate ofBoard Meetings

100％

Directorʼs Term

1year

Chairman and CEO

Concurrent holding of positions

Nomination Committee

5 members (3 outside directors, chaired by an outside director,
number of meetings held: 4)

Audit Committee

5 members (5 outside directors, chaired by an outside director,
number of meetings held: 6)

Compensation Committee

3 members (2 outside directors, chaired by an outside director,
number of meetings held: 4)

directors make up 40% of the board (two out of nine executive oﬃcers is also woman). In addition, we
appoint outside directors with a wide array of knowledge, experience and skills such as management,
marketing, accounting and legal aﬀairs, etc. Since 2015, a board evaluation has been also conducted on
annual basis to improve the eﬀectiveness of the Board.

2004 Company with Committees
2008 Appointment of Female Directors
2015 Evaluated the Board of Directors

Strengthening
Corporate Governance

Remunerations of Directors and Executive Oﬃcers

The Compensation Committee sets and determines the remuneration policy. The remuneration system
was revised on April 30, 2015 at the Compensation Committee, so that executive will be able to aligninterests with shareholders as they seek sustainable mid-term to long-term growth of corporate value.
Moving towards the goal of mutual interests with shareholders, points are given to executive oﬃcers
according to business results of each term, and a share remuneration system is adopted where shares areprovided upon their retirement as part of a medium to long-term incentive.
(Revised by the Compensation Committee on April 30, 2015)

23

|

About
S.T. CORPORATION|

Message|Our Value
Creation|

Business
Activities|

Sustainability
Activities

Governance

Financial and
Non-ﬁnancial Information|

Corporate
Information|

Integrated
Report 2022

(as of June 21, 2022)

Corporate Governance Structure

Business Execution and Audit Structure

Under the company-with-nomination-committee system, the Board of Directors
specializes in making decisions on important management matters, as well as

The Board of Directors (10 members)

supervising management. Executive Oﬃcers are delegated the authority to executebusiness operations in order to accelerate decision making and ensure agile businessexecution.

Outside director
Inside director

Outside director (female)

Inside director (female)

Executive oﬃcer

Nomination
Committee(5 members)

Audit
Committee(5 members)Compensation
Committee(4 members)

Decides on proposals
for the election anddismissal of directors

Audits the executionof duties by directors
and executive oﬃcers

Decides on compensation
details for directors andexecutive oﬃcers

Appointment

The “Nomination Committee,” “Audit Committee,” and “Compensation Committee” have been established as internal organs of the Board of Directors, of which

Executive Oﬃcers (9 members)

the majority is comprised of Outside Directors, to enhance the eﬀectiveness ofsupervision through the functions of each committee.

Skills Matrix of the Board of Directors
Management
strategy

Takako Suzuki○

Takashi Suzuki○

Naoto Onzo○

Personnel
development

Innovation

Sustainability○

Shoichiro Iwata○

Hiroko Noda

Kouichi Yoshizawa○

Global management
strategy

IT and digital

Finance andaccounting

Supply chain
management

Compliance andrisk control

○
○

○

○

○

Shinzo Maeda

Kaoru Yonemoto

Marketing○

Mitsuko Miyagawa

Seiichi Nishida

Brand and intellectual
property strategies

○

○

○

○

○

○

○

○

○
○

○
○
○
○

○
○

○

○

○
○

○

○

24

|

About
S.T. CORPORATION|

Message|

Board Composition
Director

Our Value
Creation|

Business
Activities(As of June 21, 2022)

Nomination

Audit

Compensation|

Sustainability
Activities

Governance

Financial and
Non-ﬁnancial Information|

Corporate
Information

Areas of Executive Oﬃcer Responsibility
Executive Oﬃcers|

Integrated
Report 2022

(As of June 21, 2022)

Responsibilities

Chairperson of the Board○

Takako Suzuki ※President & CEO

Overall management

Takako Suzuki※

Director○

Takashi Suzuki※

Chairperson

Overall management

Takashi Suzuki※

Director (Outside Director) ★

○Director (Outside Director) ★

●●Director (Outside Director) ★
Director (Outside Director) ★

○

●
○

○
○

Mitsuko Miyagawa○○○

Director (Outside Director) ★

Naoto Onzo

Shinzo Maeda
Shoichiro Iwata
Hiroko Noda

Managing

Executive Oﬃcer

Managing

Executive Oﬃcer

Managing

Executive Oﬃcer

Director

Seiichi Nishida ※Director

Kaoru Yonemoto※Executive Oﬃcer

Kouichi Yoshizawa※

Executive Oﬃcer○

Director
10 (Five of whom are Outside Directors)

5 members

5 members

4 members●Chairperson ○Committee member ※Holds the concurrent position of executive oﬃcer ★Independent Outside Director

In charge of the Corporate Value Enhancing Division,
Customer First Promotion Division,

New Business Development, Corporate Transformation

In charge of the Professional Use Business andthe President of S.T. PRO Co., Ltd.

Seiichi Nishida※

Yo Kozuki

In charge of the Global Marketing Division,
Corporate Communication Division,
Research & Development Division,

Kaoru Yonemoto※and Overseas Group Companies Management
In charge of the Business Administration Division andresponsible for Domestic Group Companies

In charge of the Sales Division and the Head ofDomestic Marketing Department

Kouichi Yoshizawa※
Naruaki Hashimoto

Executive Oﬃcer

In charge of the Manufacturing Division

Hideki Naito

Executive Oﬃcer

In charge of the Global Marketing Division

Masataka Shindo※Holds the concurrent position of director

25

|

About
S.T. CORPORATION|

Message|Our Value
Creation|

Business
Activities|

Sustainability
Activities

Governance

Financial and
Non-ﬁnancial Information|

Corporate
Information|

Integrated
Report 2022

List of Directors (as of the end of Sep. 2022)
Career summary, position and responsibilities

Takako Suzuki

Apr. 1984

Joined Nissan Motor Co., Ltd.

Aug. 2001

Joined LVI Group Co., Ltd

Career summary, position and responsibilities
Apr. 1984

Assistant General Manager, Corporate Relations
Management Department, Nippon Life Insurance Company(currently Louis Vuitton Japan Co., Ltd.)Mar. 1985

Joined our company

Apr. 2009

Representative Director, Shaldan Co., Ltd.

Sept. 1986

Director, General Manager of the Planning Department

Jan. 2010

Joined our company

Feb. 1991

Managing Director, in charge of administration

Mar. 2010

Manager assigned to the Manufacturing Division

Sept. 1997

Senior Managing Director

Apr. 2010

Executive Oﬃcer, in charge of the Customer Service Division,

Sept. 1998

Representative Director & President,

Fragrance Design, and New Business
Oct. 2010
Apr. 2011
June 2011

Executive Oﬃcer, Assistant General Manager of the Corporate Staﬀ

Takashi Suzuki

General Manager of the Sales Division
Aug. 2002

Representative Director & President, Chief Executive Oﬃcer

Division (in charge of business planning), in charge of fragrance design

June 2004

Chair of the Board, President & CEO

Executive Oﬃcer, in charge of Group Business Strategy

Apr. 2007

Chair of the Board, Executive Oﬃcer

and Fragrance Design

June 2007

Director, Chair of the Board, Executive Oﬃcer,

Director and Executive Oﬃcer,

in charge of Group Strategy

in charge of Group Business Strategy and Fragrance Design

Apr. 2009

Director, Chair of the Board, President & CEO

Director and Executive Oﬃcer,

Apr. 2012

Director, Chair of the Board, CEO

Special assignment to the Global Marketing Division

May 2012

Corporate Auditor, Shaldan Co., Ltd. (current position)

Apr. 2013

Director, President & CEO

June 2012

Chair of the Board, Chairman & CEO of our company

May 2013

Director, Shaldan Co., Ltd. (current position)

Apr. 2021

Representative Director, Hiyoko Scholarship Foundation

Mar. 2020

Outside Director, TRUSCO Nakayama Corporation

June 2021

Director and Chairperson (current position)(current position)

Mar. 2022

Representative Director, Hiyoko Scholarship Foundation

Apr. 2012

June 2021

Chair of the Board, President & CEO of our company(current position)

Sept. 2022

Outside Director, KING JIM Co., Ltd. (current position)

Attendance at board meetings and other meetings

Board of Directorsʼ meetings 9/9 Nomination Committee meetings 4/4

Signiﬁcant concurrent positions outside our company

Outside Director, TRUSCO Nakayama Corporation, Director, Shaldan Co., Ltd.
External Director, KING JIM Co., Ltd.

Number of our companyʼs shares owned
515,088(current position)

Attendance at board members and other meetings

Board of Directors meetings 9/9 Nomination Committee meetings 4/4

Signiﬁcant concurrent positions outside our company

Representative Director, Hiyoko Scholarship Foundation, Corporate Auditor,
Shaldan Co., Ltd.

Number of our companyʼs shares owned
665,600

26

|

About
S.T. CORPORATION|

Message|Our Value
Creation|

Business
Activities|

Sustainability
Activities

Governance

Career summary, position and responsibilities

Naoto Onzo

Financial and
Non-ﬁnancial Information|

Corporate
Information|

Integrated
Report 2022

Career summary, position and responsibilities

Apr. 1987

Research Associate, Waseda University School of Commerce

A p r. 1996

Professor, School of Commerce

and joined Nishimura & Sanada

Sept. 2004

Professor, Faculty of Commerce (current position)(currently Nishimura & Asahi)Sept. 2008

Director, Faculty of Commerce, Dean of School of CommerceOct. 1990

Joined TMI Associates

June 2010

Outside Director of our company (current position)

Mar. 1994

Admitted to New York Bar, the United States

Apr. 2013

Trustee, Waseda University

Apr. 1995

Partner, TMI Associates (current position)

Sept. 2015

External Director, KING JIM Co., Ltd. (current position)

Apr. 2005

Lecturer, Keio Law School

June 2018

Outside Director, LOTTE Co., Ltd. (current position)

June 2008

Outside Director of Our Company

Apr. 2019

Full-time Trustee, Waseda University (current position)

Apr. 2012

Auditor, Unilever Japan Holdings K.K.

June 2015

Outside Director of Our Company (current position)

June 2016

Outside Audit & Supervisory Board Member,

Attendance at board members and other meetings

Board of Directorsʼ meetings 9/9 Nomination Committee meetings 4/4

Apr. 1986

Mitsuko Miyagawa

Registered as an attorney at low,

Panasonic Corporation

Compensation Committee meetings 4/4 Audit Committee meetings 6/6

Signiﬁcant concurrent position outside our company

June 2019

Outside Director, KING JIM Co., Ltd.

Board of Directorsʼ meetings 9/9 Nomination Committee meetings 1/1

Full-time Trustee and Professor of Faculty of Commerce, Waseda University

Outside Director, Mitsubishi Motor Corporation

Attendance at board members and other meetings

Outside Director, LOTTE Co., Ltd

Audit Committee meetings 6/6-

Partner, TMI Associates

Number of our companyʼs shares owned

Signiﬁcant concurrent position outside our company
Number of our companyʼs shares owned
-

27

|

About
S.T. CORPORATION|

Message|Our Value
Creation|

Business
Activities|

Sustainability
Activities

Governance

Career summary, position and responsibilities
Apr. 1970

June 1996
Dec. 1997

Mar. 1973

Joined Shiseido Company, Limited

Mar. 1986

General Manager, Cosmetics Strategic Planning Department,

May 1992

Cosmetics Marketing Division

Mar. 1997

Chief Oﬃcer of Asia-Paciﬁc Regional Headquarters,

May 2000

Shinzo Maeda
June 2003
June 2005
Apr. 2011
Apr. 2013
Apr. 2014
June 2014
June 2015
Sept. 2015
June 2021

Sept. 2019

General Manager, Sales Promotion Department,
Shiseido Company, Limited
Director, Executive Oﬃcer,
and General Manager of Corporate Planning Department
President & CEO, Representative Director
Chairman, Representative Director
Chairman, Representative Director, President & CEO
Chairman, Representative Director
Senior Advisor
Outside Director, Yuasa Trading Co., Ltd (current position)
Outside Director, TOSHIBA Corporation
Outside Director of our company (current position)

Attendance at board members and other meetings

Board of Directorsʼ meetings 6/6 Nomination Committee meetings 3/3
Compensation Committee meetings 3/3 Audit Committee meetings 4/4

Signiﬁcant concurrent position outside our company
Outside Director of Yuasa Trading Co., Ltd

Number of our companyʼs shares owned-

June 2006

and Director and President, Shiseido Asia Paciﬁc
Cosmetics Strategic Planning Department,|

Corporate
Information|

Integrated
Report 2022

28

Career summary, position and responsibilities

International Operations Division, Shiseido Company, Limited,
Apr. 2001

Financial and
Non-ﬁnancial Information

Shoichiro Iwata

June 2021

Joined Lion Fat and Oil Co., Ltd. (currently Lion Corporation)
Joined PLUS Corporation
General Manager, ASKUL Business Promotion Oﬃce, Sales Division
President, ASKUL Corporation
President & Chief Executive Oﬃcer (CEO)Outside Director, Shiseido Company, Limited
Representative Director and President,
FORCE marketing and management, inc. (current position)
Outside Director of our company (current position)

Attendance at board members and other meetings

Board of Directorsʼ meetings 6/6 Nomination Committee meetings 3/3
Audit Committee meetings 4/4

Signiﬁcant concurrent position outside our company

Representative Director & President of FORCE marketing and management,inc.

Number of our companyʼs shares owned
-

|

About
S.T. CORPORATION|

Message|Our Value
Creation|

Business
Activities|

Sustainability
Activities

Governance

Career summary, position and responsibilities
Ap r. 1987

(currently KPMG AZSA Co.)
Joined Tokyo Branch of Prudential Securities Incorporated

Mar. 1990

Registered as Certiﬁed Public Accountant,

Hiroko Noda

Joined Tokyo Branch of Canadian Imperial Bank of Commerce

July 2006

Joined BUSICOM Co., Ltd.

Sept. 2007

Representative Director, Prominent Consulting Co., Ltd.

May 2010

Representative Director, Probity Consulting Co., Ltd.

Director, General Manager of the Corporate Planning Department,

Part-time Lecturer, Graduate School of Asian and International
Outside Director, MODEC, Inc. (current position)

Mar. 2019

Outside Director (Audit & Supervisory Committee Member),Outside Director of Our Company (current position)

June 2022

Outside Director, CHORI Co., Ltd. (current position)

Attendance at board members and other meetings
Board of Directorsʼ meetings 6/6 Audit Committee meetings 4/4

Signiﬁcant concurrent position outside our company

Planning Department, Nissay Leasing Company Limited

Seiichi Nishida

Dispatched to our company, Manager assigned to the President

June 2020

Manager, Business Management Division

Apr. 2021

Joined Our Company, Executive Oﬃcer,
in charge of the Business Management Division

June 2021

Part-time Lecturer, Graduate School of Asian and International Business Strategy, Asia University
Outside Director, MODEC, Inc.
Outside Director (Audit & Supervisory Committee Member), Okabe Co., Ltd.
Outside Director, CHORI Co., Ltd.

Number of our companyʼs shares owned-

Director and Executive Oﬃcer, in charge of
the Business Management Division

Sept. 2021

Director and Executive Oﬃcer, in charge of the Business Management
Division, the Corporate Planning Oﬃce, and New Business Development

Oct. 2021

Director and Executive Oﬃcer, in charge of the Business Management
Division, the Corporate Planning Oﬃce, the ESG Promotion Oﬃce,
and New Business Development

Apr. 2022

Director and Managing Executive Oﬃcer, in charge of the Corporate
Value Enhancing Division, the Customer First Promotion Division,
New Business Development, and Management ReformMay 2022

Director and Managing Executive Oﬃcer, in charge of the Corporate
Value Enhancing Division, the Customer First Promotion Division,
the New Business Development Oﬃce, and Management Reform

Representative of NODA C.P.A. Accounting Firm

Representative Director, Probity Consulting Co., Ltd.

Director, Executive Oﬃcer, General Manager of the Corporate

Apr. 2020

Okabe Co., Ltd. (current position)
June 2021

Director, General Manager of the Corporate Planning Department,
General Manager of the Legal Aﬀairs and Compliance Management Oﬃce

Apr. 2018

Business Strategy, Asia University (current position)
Mar. 201929

Nissay Information Technology Co., Ltd.

(current position)
Apr. 2014

Integrated
Report 2022

Joined Nippon Life Insurance Company

Joined Tokyo Branch of Banque Indosuez S.A.

June 2000|

June 2010
Apr. 2011(current position)(currently Credit Agricole CIB)

Corporate
Information

Apr. 1987

Representative of NODA C.P.A. Accounting Firm
Aug. 1992|

Career summary, position and responsibilities

Joined KPMG Minato Audit Corporation

Aug. 1987

Financial and
Non-ﬁnancial Information(current position)

Attendance at board members and other meetings
Board of Directors meetings 6/6

Signiﬁcant concurrent position outside our company-

Number of our companyʼs shares owned
1,000

|

About
S.T. CORPORATION|

Message|Our Value
Creation|

Business
Activities|

Sustainability
Activities

Governance

Career summary, position and responsibilities

Financial and
Non-ﬁnancial Information|

Corporate
Information|

Integrated
Report 2022

Career summary, position and responsibilities

Apr. 1982

Joined Unicharm Corporation

Apr. 1985

Joined Our Company

Oct. 2018

Joined Our Company; General Manager,

Apr. 2007

Manager, Finance and General Aﬀairs Group

Overseas No. 2 Business Unit,

Apr. 2009Manager, Management Planning Group

Business Administration Division

Apr. 2010

Assistant General Manager, Corporate Staﬀ Division,

Oct. 2019

General Manager, Overseas Business Division,and Manager of the Management Planning GroupManager, Overseas Marketing Group
Apr. 2020

Executive Oﬃcer, in charge of the Overseas Business
Division, General Manager of the Overseas Group

Kaoru YonemotoCompanies Management Headquarters
Apr. 2021

Apr. 2012

Executive Oﬃcer, in charge of the Overseas Business

Headquarters, Business Administration Division,

Kouichi Yoshizawa

and Manager of the Management Planning Group
Apr. 2013

Senior Manager of the Management Planning Group

Apr. 2014

Executive Oﬃcer, In charge of the Business Strategy

Division, Overseas Group Companies Management
Apr. 2022

Division and responsible for Domestic Group Companies,

Managing Executive Oﬃcer, in charge of the Global
Marketing Division, Corporate Communication Division,and Manager of the Management Planning Group
June 2014

Research and Development Division,
Director, Managing Executive Oﬃcer,

Companies
Apr. 2017

in charge of the Global Marketing Division,
Corporate Communication Division,-

Signiﬁcant concurrent position outside our company-

Number of our companyʼs shares owned-

Director and Executive Oﬃcer, In charge of the Business
Strategy Division and responsible for Domestic Groupand Overseas Group Companies Management

Attendance at board members and other meetings

Director and Executive Oﬃcer, In charge of the Business
Strategy Division and Manufacturing Division

Apr. 2018

Research and Development Division,(current position)

Director and Executive Oﬃcer, In charge of the Business
Strategy Division and responsible for Domestic Groupand Overseas Group Companies Management
June 2022

Assistant General Manager, Business Administration

Companies
May 2018

Outside Director of NS FaFa Japan Co., Ltd.

Oct. 2019

Director and Executive Oﬃcer, In charge of the Business
Strategy Division and Business Management Division,and responsible for Domestic Group Companies

Apr. 2021

Director and Executive Oﬃcer, In charge of the Business
Administration Division and responsible for Domestic Group
Companies (current position)

Attendance at board members and other meetings

Board of Directors meetings 9/9 Compensation Committee meetings 3/3

Signiﬁcant concurrent position outside our company-

Number of our companyʼs shares owned
16,500

30

|

About
S.T. CORPORATION|

Message|Our Value
Creation|

Business
Activities|

Sustainability
Activities|

Financial and
Non-ﬁnancial Information

GovernanceCorporate
Information|

Integrated
Report 2022

Financial Information
Accounting period
Fiscal year [million yen]
Net Sales ※1・2・3
Operating income
Ordinary income
Proﬁt attributable to owners of parent
R&D expenses
Capital expenditures
Depreciation and amortization
Advertisement expenses
Free cash ﬂow ※4
End of the ﬁscal year

2013/3

2014/3

2015/3

2016/32017/3

2018/3

2019/32020/32021/32022/3

46,944

46,99348,26348,35145,95848,62747,78247,54649,67445,470

2,839

3,374

3,945

3,251

2,722

3,344

3,737

3,481

1,804

2,261

2,526

1,109

643

725

790

851
2,696

1,800

2,131

1,813

2,342

2,854

1,141

1,497

1,598

1,725

2,903

565

1,234

892

912

1,817

572

564

513

536

611

2,061

942

1,486

1,758

608

830

894

844

1,128

997

2,917

2,678

2,857

2,742

2,618

-944

2,624

369

1,857

4,529

3,481
3,470
2,410
596
1,822
970
2,896
835

3,060

3,137

1,335

1,109

1,390

1,350

1,197

2,821

2,649

2,560

2,606

-119

-47

2,859

996
44,40230,07632,37033,78534,92438,45842,112

41,97643,276

46,817

20,21321,08722,60023,49625,812

29,022

29,22330,13632,63331,847

21,716

21,853

21,851

21,69921,87722,063

22,112

22,152

22,20522,227

Operating income margin

3.8

Return on assets (ROA) ※6

1.9

4.5

3.8

4.8

6.2

7.2

5.9

7.1

7.9

7.1

Return on equity (ROE) ※7

2.9

4.0

2.7

2.7

5.0

6.0

4.3

5.3

5.6

2.4

Equite ratio

65.4

6.1

4.2

4.1

7.6

9.0

6.3

7.8

8.2

3.5

63.2

64.8

65.2

65.3

66.8

68.2

68.5

68.5

70.4

26.01

56.74

40.83

42.01

83.57

109.5881.66

102.19113.9049.91

905.84936.061,001.84

1,049.58

1,148.41

1,285.01

1,295.38

1,337.42

1,445.14

1,407.03

60.66

92.52

75.49

88.71

122.33146.94126.62158.74168.51

100.26

22.00

22.00

22.00

22.00

24.00

31.00

36.00

36.00

37.00

38.00

84.6

38.8

53.9

52.4

28.7

28.3

44.1

35.2

32.5

76.1

988

999

1,021

1,114

1,809

2,286

1,892

1,601

1,955

1,527

Total assets
Total net assets
Number of issued outstanding shares [thousand] ※5
Financial indicators [%]※8

Per share data [yen]Earnings per share [EPS] ※9
Book value per share [BPS]
Cash ﬂow per share ※11
Dividends per share (DPS)
Payout ratio [%] ※12
Common stock price

※13

※10

*1: The accounting policy was changed, and the new policy has been used from FY 3/2017.
*2: As the accounting standards were changed in FY 3/2019, the new accounting standards have been used from FY 3/2018.
*3: The accounting standards were changed in FY 3/2022.
*4: Free cash ﬂow = Cash ﬂow from operating activities + Cash ﬂow from investing activities*5: The number of outstanding shares does not include the number of treasury shares.
*6: Return on assets (ROA) = Proﬁt attributable to owners of parent ÷ Total assets (average of the values at the beginningand end of the term) × 100*7: Return on equity (ROE) = Proﬁt attributable to owners of parent ÷ Equity capital (average of the values at the beginningand end of the term) × 100*8: Capital-to-asset ratio = Equity capital (term-end) ÷ Total assets (term-end) × 100*9: Earnings per share (EPS) = Proﬁt attributable to owners of parent ÷ No. of outstanding shares (average in the term)*10: Book value per share = Net assets ÷ No. of outstanding shares (term-end)*11: Cash ﬂow per share = (Proﬁt attributable to owners of parent + Depreciation) ÷ No. of outstanding shares*12: Payout ratio = Dividend per share ÷ BPS × 100 (calculated from consolidated ﬁgures)*13: Closing share price as of the end of the term ending March

31

|

About
S.T. CORPORATION|

Message|Our Value
Creation|

Business
Activities

Non-ﬁnancial Information
Accounting period

2018/3

2019/32020/32021/32022/3

3,619

3,500

4,039

3,864

2,892

Scope1[t-CO2]

1,027

977

972

956

978

Scope2[t-CO2] ※3

2,592

2,523

3,067

2,908

1,914

Total weight of waste [t]

864

848

1,329

1,183

1,393

Water consumption [t]40,634

40,63844,26945,37845,054

No. of employees (consolidated)

952

948

1,032

997

953

No. of employees (domestic corporate group)

633

647

767

773

757

No. of regular employees

469

475

572

584

570

No. of female ones

138

147

199

211

209

164

172

195

189

187

134

138

151

145

138

Total actual working hours per person per year [h]※5

1,667

1,674

1,691

1,743

1,744

Ratio of employees who have taken annual paid leave [%]※6

54.7

56.2

60.8

53.9

59.6

Ratio of female managers [%]

8.3

11.3

10.9

10.2

11.5

Favorability ranking of companies [place]※7

138

156

131

168

138

Ratio of independent outside directors [%]

55.6

55.6

55.6

50.0

50.0

Ratio of female directors [%]

33.3

33.3

33.3

37.5

30.0

SocietyNo. of non-regular employees※4
No. of female ones

Sustainability
Activities|

Governance

Financial and
Non-ﬁnancial Information

Corporate
Information|

Integrated
Report 2022

Stock Information (as of March 31, 2022)

Environment
Total CO2 emissions [t-CO2] ※2|Governance*1: The subject organization is S.T. Group (in Japan), except the number of employees (consolidated), the favorability
ranking of companies, the ratio of independent outside directors, and the ratio of female directors*2: Total CO2 emissions mean the sum of Scopes 1 and 2.
*3: Scope 2 emissions was calculated by multiplying the consumption of electric power from renewable energy by the
adjusted emission coeﬃcient for each electric power menu and multiplying the other power consumption by thenational average emission coeﬃcient and then adding up them.
*4: The number of non-regular employees means the sum of the number of contract employees and the number ofrehired retired employees.
*5: Total actual working hours per person per year is the working hours of regular employees.
*6: Ratio of employees who have taken annual paid leave is the ratio of regular employees who have taken paid leave.
*7: The favorability ranking of companies was taken from the Reputation-Business Person Edition of Nikkei Survey on
Corporate Images.

Stock Status
96,817,000
23,000,000
100
20,643

Total number of authorized shares
Total number of outstanding shares
No. of shares per trading lot
No. of shareholders

Major Shareholders
Shareholder

No. of shares held
[thousand]Shareholding ratio
[%]

5,587
1,575

24.8

The Master Trust Bank of Japan, Ltd. (trust company)
Nippon Life Insurance Company

1,337

5.9

884

3.9

Takashi Suzuki

666

3.0

Fumakilla Limited

541

MUFG Bank, Ltd.

524

2.4

Takako Suzuki

515

2.3
2.3

Kanichi Suzuki

500

2.2

Suzuki Kanichi Shoten Ltd.

433

1.9

Chardin Co., Ltd.

Mizuho Trust & Banking Co., Ltd.; Employee Pension Trust;
Mizuho Bank Account Second-tier trustee: Custody Bank of Japan, Ltd.

7.0

Notes
1. Shareholding ratio was calculated after deducting 489 thousand treasury shares.
2. 884 thousand shares held by Mizuho Trust & Banking Co., Ltd.; Employee Pension Trust; Mizuho Bank Account(Second-tier trustee: Custody Bank of Japan, Ltd.) are the trust assets of Mizuho Trust & Banking, which set the sharesof our company as employee pension trust.

Shareholder Composition
Thousand shares(％)

Individuals and others

8,324(36.2)

Other domestic corporations

7,620(33.1)

Financial institutions

5,336(23.2)

Foreign corporations, etc.

1,547

(6.7)

170

(0.8)

Securities ﬁrms

32

|

About
S.T. CORPORATION|

Message|Our Value
Creation|

Business
Activities|

Sustainability
Activities|

Governance|

Financial and
Non-ﬁnancial Information

Corporate
Information

Integrated
Report 2022

LocationJapan

Global● Hokkaido Branch◆ S.T. Korea Corporation (South Korea)◆ Aekyung S.T. Co., Ltd.(South Korea)◆ S.T. MYCOAL Co., Ltd.
● Tohoku Branch◆ Family Glove Co., Ltd. (Taiwan)● Chubu Branch■ Fukushima Plant● Kinki Branch● Kan-etsu Branch● Chugoku-Shikoku Branch■ Saitama Plant■ Kyushu Plant◆ S.T. (Thailand) Co., Ltd.
◆ Shaldan(Thailand) Co., Ltd.

■ Kyushu Plant
Kokura Oﬃce

● Headquarters (STR Center)● Yokohama Sales Oﬃce

● Tokyo Metropolitan Branch▲ R&D Center◆ S.T. PRO Co., Ltd.

● Kyushu Branch◆ S.T. Business Support Co., Ltd.
◆ Japan Aroma Laboratory Co., Ltd.

● Headquarters/marketing base

■ Manufacturing base

▲ Research base◆ Major group companies

33

|

About
S.T. CORPORATION|

Message|Our Value
Creation|

Business
Activities

Corporate Proﬁle and Group Companies(as of March 31, 2022)

Corporate Proﬁle|Sustainability
Activities|

Governance|

S.T. CORPORATION

Address of the headquarters:

1-4-10 Shimoochiai, Shinjuku-ku, Tokyo 161-8540

Integrated
Report 2022

Entire Picture of Communication Tools

Integrated Report 2022
(Creating Corporate Value Report)

Refreshing the Air

Tel: 03-3367-6111 (main)
Date of establishment:

August 31, 1948

Account closing date:

March 31

No. of employees:

953 (consolidated) / 450 (non-consolidated),

Website(Overall andlatest information)

Prime Market of Tokyo Stock ExchangeGroup Companies

Consolidated subsidiaries
・S.T. PRO CO., LTD.

・S.T. Business Support Co., Ltd.
・S.T. MYCOAL CO., LTD.
・S.T. (Thailand) Co., Ltd.
・Family Glove Co., Ltd. (Taiwan)
・S.T. Korea Corporation (South Korea)
・Shaldan (Thailand) Co., Ltd.

1-4-10 Shimoochiai, Shinjuku-ku, Tokyo 161-8540

Integrated Report(Financial and non-ﬁnancial summaries)

Overview

excluding part-timers and rehired retired employees

https://www.st-c.co.jp/

Corporate
Information

Highlights

Corporate name:

Listed on:

Financial and
Non-ﬁnancial Information

Corporate ProﬁleInvestorsʼ Guide(IR material)

Specialist Data
Non-consolidated subsidiary・Japan Aroma Laboratory Co., Ltd.
Equity-method aﬃliates
・Aekyung S.T. Co.,Ltd. (South Korea)

Summary of
Financial Results(Financial statements)

Securities Report(Financial statements)

General Meeting of
Shareholders(Material produced inaccordance with
the Companies Act)・NS FaFa Japan Co., Ltd.
Other aﬃliated companies
・Shaldan Co., Ltd.

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