2-11, Kanda Nishiki-cho, Chiyoda-ku
Tokyo, 101-0054 Japan
Tel: +81-3-3518-1111
https://www.sanyo-trading.co.jp/english/
Date of issue: February 28, 2023

Corporate Report2022

Mission/Slogan

SloganChallenging ourselves for the BEST solution

MissionThe Slogan expresses our philosophical framework, which starts with theManagement Mission, in a single phrase. We are a complex andWith an unwavering and enterprising spirit, and a free and open corporate culture, we will
supply the best solutions in a flexible and timely fashion, working to realize a process of“co-creation” by which we contribute both to the sustainable development of
the international community and the happiness of our employees.
Rubber Business Unit
With the trust that we have won and the results that we have achieved over the course of our history as a foundation, we willcontribute to the development of the global rubber industry through a pioneering spirit and timely services.

specialized trading company tasked with resolving social issues throughthe provision of various products and technologies. To that end, we will

Chemical Business Unit
Through the provision of the best solutions based on wide-ranging technological knowledge and niche specialty products, inaddition to the active pursuit of investment initiatives, we will contribute to the development of the fine chemicals field.

always work to find the BEST solution for our customers. Consistently
seeking the best solution is the guiding principle on which Sanyo Trading
employees act. To find the BEST solution, we constantly challenge
ourselves, not only utilizing our existing knowledge and resources, but

Solution

also flexibly expanding our ideas to new fields and technologies to

Machinery & Environmental Business Unit
We will contribute to food safety and the advancement of renewable energies by seeking out and supplying the best
technologies and equipment from around the world in the powder processing and woody biomass fields.
Industrial Products No.1 Business Unit/Industrial Products No.2 Business Unit
Working agilely and with sure knowledge, we will utilize our just-in-time system to provide our customers with advanced
technologies able to transform society, thereby contributing to social development with a focus on the mobility field.

pursue the BEST solution.

Origin of Mission

Life Science Business Unit
We will contribute to improving people’s quality of life (QoL) and realizing an environment-friendly society by providing
materials and scientific instruments that contribute to the development of a wide range of industrial fields including
healthcare, food, chemicals, and the environment.

Trust is the Lifeblood of Business

Integrity

We comply with laws and regulations, and act with integrity

Speed

We make decisions and act on them quickly and accurately

Spirit of challenge

We aim toward a future of development and creativity

Innovation

We understand the trends of the times and anticipate changeThis is a quotation from the General Information for Sales Department Employees,
a document distributed to staff by our first president, Eiichi Tamaki, in 1975. The text
explains that learning day by day about market conditions and products is the way
to ensure smooth business transactions and gain trust, which are the foundationsof growth. This approach is also reflected in the Management Mission through its
commitment to an ‘unwavering and enterprising spirit’ and ‘supplying the bestsolutions.’ This spirit continues to thrive as a core value of our business activities.

Credo

Eiichi TamakiFirst president

At the same time as realizing our Management Mission, our vision as a company listed on theTokyo Stock Exchange Prime Market is to be an excellent trading company with high-quality
standards that gets itself noticed by staying one step ahead of the game. Toward realizing thisvision, employees always keep at hand the CREDO BOOK, which sets out the corporate Mission
and Credo. Working thus to deepen their understanding of the Mission and act in accordancewith the Credo brings us nearer to realizing our Mission and our strategy.

Contents
Chapter 1

About Sanyo Trading

Chapter 2

Chapter 3

Editorial Policy

Growth Strategy

Foundations of
Our Value Creation

This report aims to inform a wide range of stakeholders about the management status, businessoverview and external environment of the Company and the Sanyo Trading Group, from financial
and non-financial perspectives.

Value Creation Story

3

Message from the CEO

9

At a Glance

5

Business Overview

15

Value Creation Model

7

Rubber Business Unit

16

Chemical Business Unit

SANYO TRADING Corporate Report 2022

23

Materiality Initiatives

17

Reducing Environmental Impact

25

Providing Enriching Lifestyles

27

18

Empowering Highly Motivatedand Diverse Human Resources

29

Machinery & Environmental
Business Unit

19

Building a Resilient
Management Structure(Corporate Governance)

31

Life Science Business Unit

20

Overseas Subsidiaries Segment

21

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

1

Sustainability Policy/
Material Issues

Dialogue with Outside Directors

35

Corporate Officers

39

Reporting Scope

Financial and
Non-Financial Highlights

41

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

Corporate Data/
Stock Information

42

Period Covered
October 1, 2021 to September 30, 2022
(Please note that this report includes information regarding the results of activities outside the reporting period.)

Regarding Forward-Looking Statements
Forward-looking statements in this report are based on forecasts made by the Company inlight of information available at the time of writing, and involve a number of risks anduncertainties. Actual business results may differ substantially from the forward-looking
statements and forecasts in this report.

SANYO TRADING Corporate Report 2022

2

Value Creation Story
Since its establishment in 1947, Sanyo Trading Co., Ltd. has been continuously guided by a spirit of challenge.
We have expanded the regions in which we do business not just within Japan but throughout the world.
Our operations now span four locations in Japan and include 17 overseas Group companies.
We continue to pass down our spirit of challenge, cultivated over a history of more than 75 years, to each new
generation of employees—it is this spirit that is the driving force of the Group’s development and growth.
In 2018, we renewed our Mission and Slogan, and embarked on a new era. We will continue to pursue“finding the BEST solution for our customers.”

1947–1964

1965–20112012–

Established growth foundation through import of synthetic rubber

Strengthened competitiveness through business selection and concentration

Accelerated M&A and globalization for further business expansion

In 1947, Eiichi Tamaki drew on his prewar career experience in natural rubber
import operations to establish Sanyo Trading at Kobe, Hyogo Prefecture,
which was in ruins after the war. Sanyo Trading acquired a rubber importagency license from the Mineral Products Trading Public Corporation andcontributed to the development of the Japanese rubber industry by engaging
in the import of synthetic rubber. Over the following years, Sanyo Trading
concluded sole Japan agent agreements, in 1949 with the U.S. pesticide
firm Rohm & Haas Company and in 1952 with the Canadian synthetic
rubber firm Polysar Limited, thus developing in a short space of time into afull-scale trading company.

In 1979, we began trading with the automotive leather manufacturer Garden
State Tanning (GST), and in the 1980s we rolled out sales to automotive
manufacturers. Subsequently, we expanded trading in high-value-added,
high-performance parts and components for automotive interiors, developing
this area as one of our core businesses. Around 2000, we implemented adecisive program of business selection and concentration with the aim ofachieving a major advance. Having withdrawn from primary products, which aresusceptible to market price fluctuations, we reorganized unprofitablebusinesses and reformed under a structure specializing in industrial products.

In 2012, Sanyo Trading was listed on the Tokyo Stock Exchange, Second Section,
moving to the First Section in the following year. We accelerated globalization by
establishing new overseas bases in North America, Asia, and other locations,and additionally expanded business scope through M&A in fields including
industrial chemicals and medical equipment. We also began handling anddeveloping environment-friendly products, and in 2021 established the Life
Science Business Unit, which delivers products and services that support daily life,
mainly in the fields of food and medicine. In 2022, Sanyo Trading transferred to theTokyo Stock Exchange Prime Market as a step toward further advancement.
Net sales (fiscal year
ended September 2022)

111,250

Evolution of business units and main trading products

1952

1967

Concluded three-party agreementwith Polysar and H. Muehl-stein.
Became Japan sole agent.

Concluded basic trading agency
agreement with Toray Silicon Co.,
Ltd. (now Dow Toray Co., Ltd.)

1949

1963

1981

1982

Concluded import agency
agreement with the U.S. firm
Rohm & Haas.

Established Nishiki-kai as
the foundation for a direct
pesticide sales channel.

Concluded import agency
agreement for
polytetrafluoroethylene (PTFE)
wax with Shamrock Technologyof the United States.

Started export of
AQUA KEEP.

1978
Launched commercial productdevelopment research into
automotive interior leather
materials with GST.

1947

1950

million yen

1990

1993

2016

Bayer AG of Germany
acquired Polysar to establish
the world’s largest synthetic
rubber enterprise, the German
company LANXESS.

Began sales of Perbunan(NBR) manufactured byBayer of Germany.

The synthetic rubber business of theGerman company LANXESS wasreestablished as ARLANXEO, a fully
owned subsidiary of Saudi Aramco.

2001

RubberBusiness Unit

2016
ChemicalBusiness Unit

Acquired Sort Co., Ltd,a specialist importer of
UV-related additives.

Ended agency
agreement with the
U.S. firm Rohm & Haas.

1989

1993

1996

2020

Toyota Motor Corporation adopted
automotive interior leather materials
manufactured by GST for the Lexus
also and enters into full-scalebusiness relations with GST.

Concluded sales agency
agreement with the lumbar
support product manufacturer
SNA (now L&P).

Concluded sales agency
agreement for automotive
seat heater with WET of
Germany (now Gentherm).

Restructured to create asystem of two business
units, No.1 and No.2,
dealing with different
products.

1956

1984

2004

2015

Concluded sole agent agreementwith the U.S. firm California
Pellet Mill (CPM).

Concluded sole agent agreement for theimport of hot melt dispensing applicatorsand cold glue systems with the U.S. firm
Valco Cincinnati.

Acquired Cosmos
Shoji Co., Ltd.

Installed gasifying combined
Acquired YPTECH Co., Ltd.
heat and power-plants (CHP)
manufactured by Burkhardt ofGermany that use wood pellets
supplied by the Industrial
Products Business Unit at
Ueno, Gunma Prefecture.

1955

1960

1973

1978

1985

1992

2002

Established
Development
Section within
ChemicalBusiness Unit.

Established Scientific
Systems andInstruments
Development Office.

Renamed Scientific Systems andInstruments Development Office as
Headquarters Chemical
Department, Scientific Instruments
Development Office.

Concluded agency agreementwith KRÜSS of Germany andbegan import of force
tensiometers and contact angle
analyzers and other equipment.

Established Scientific
Instruments Business
Unit following
acquisition of Newly
Instruments Co., Ltd.

1965

1970

1975

1980

1985

1990

1995

2000

2005

Industrial Products
Business Unit

2019

2010

2021

2022

EstablishedLife Science
Business Unit.

Reorganized
SCRUM Inc. asa Sanyo Trading
subsidiary.

2015

Machinery &Environmental
Business Unit

Life Science
Business Unit
(formerly Scientific
Instruments
Business Unit).

2020
Site of Sanyo Trading’s foundation in Kobe

3

SANYO TRADING Corporate Report 2022

SANYO TRADING Corporate Report 2022

4

At a Glance
On the foundation of our strengths in human resources, products, and finance, we are sourcing new products
and creating new businesses by offering a high level of unique added value on a global basis, focusing on thefine chemicals, mobility, sustainability, and life science markets.

Net sales

111.2 billion yen

Ordinary income

6.2 billion yen(Fiscal year ended
September 30, 2022)

Human
resources

Focus Markets and Products
Fine chemicals

Mobility

SustainabilityLife science• Rubber Business Unit
• Chemical Business Unit

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

• Machinery & Environmental
Business Unit

• Life Science Business Unit

Synthetic rubber Paint, ink

Seat heater

Pellet millElectronicmaterials

Lumbar support

Combined heatand power plant

Films

Overseas Expansion

Operations spanning

17Bases in 10countries

Sanyo Corporation of America

Sanyo Trading (Shanghai)
Sanyo Trading Co., Ltd.
Dusseldorf Representative Office

Sanyo Trading
Asia
Mainstay products
Sanyo Trading• Chemicals
India• Automotive interior parts
Focus• Business development at Laem Chabang• Life science-related products

Mainstay products• Automotive interior parts • Chemicals
Focus• Lithium-Ion battery (LIB)-related partsand components• EV-related business

Sanyo Trading International (Hong Kong)
Sanyo Trading (Viet Nam)
Singapore Sanyo Trading

Mainstay products• High-performance resins • Highly-functional film
• Automotive interior parts • Indirect materials for rubber
Focus• High value-added film
• Business development in Alabama

Sun Phoenix Mexico

Sanyo Trading’s strengths

Products

Finance

Human resources to match
supplier and customer
expectations

High-value-added products inniche fields

Solid financial base andfinancial power

Benefiting from the sales network
and information-gathering capacityof an independent trading
company not limited by ties to aparticular conglomerate, our sales
professionals, equipped with highlevels of expertise andcomprehensive technicalknowledge, are able to work incollaboration with suppliers startingfrom the upstream design anddevelopment stages to deliverproducts optimally customized tomatch customer needs.
By building on our existing
businesses (products, customers,
and distribution channels), we
expand related businesses andsource new products. Over our 75
years of history, we have built anunshakeable foundation of trust.

From fine chemical compounds
and raw materials that reduce
environmental impact toautomotive interior parts that makefor safe and comfortable vehicle
interiors, we sell products sourced
from around the world that meetmarket needs.
With a basic policy of “oneproduct, one supplier,” we havemaintained positive trading relations
with suppliers and customers for 40
to 50 years. Focusing on the four
markets of fine chemicals, mobility,
sustainability, and life science, wehave established a unique position
by delivering high-value-added
products based on advanced
technologies in niche-top fields, thus
creating new markets of our own.

The shareholders’ equity ratio for
the fiscal year ended September
2022 was 61.7%. Over a period of
75 years, we have laid a solid
financial foundation by building astable business based onhigh-margin, niche-top products andaccumulating the profits. Towardfurther growth, we are actively
engaged in appropriate and agile
investment in development projects.
Meanwhile, we are reinforcing
profitability Group-wide throughM&A and nurturing core businesses
by sourcing new products andcreating new businesses. In ourbusiness dealings with customers,
we establish a system that ensures
stable supply of products based ona solid financial foundation.

PT. Sanyo Trading Indonesia

5

SANYO TRADING Corporate Report 2022

SANYO TRADING Corporate Report 2022

6

Value Creation Model
Sanyo Trading is working to contribute to the Sustainable Development Goals (SDGs) by seeking to create newvalue in four focus fields. With that aim, we are leveraging management resources in our cultivated areas of strength
to develop business functions that meet customer needs and provide a wide range of products and services.

Management Resources
Survey/Planning

Specialist knowledge
and expertise
We offer professional
teams to provide support
in niche markets

Design/Development• Provide value-added services

We have built strong
relationships of trust withour business partners• Provide technology support
for stable manufacturing

17 bases across
10 countries
We are devoting resources
to globalization as wellas the Japanese market

Maintenance/
After-sales
service

Social and environmental value
we aim to provide throughour products and services

O U T P U T

OUTCOME

Automotive

Fine chemicals

Construction

Contribute to complementary
technologies andenvironmental adaptation
through stable supply ofhigh-value-added finechemicals to a wide range
of industries

Prototyping• Provide total support tocustomer manufacturing fromdesign and development tomaintenanceOne product,
one supplier

Goods and services thatuse our products

Bridges andother structures

Stablejust-in-time
supplyRoads

Books,
pamphlets, etc.

Sustainability

Smartphones

Daily necessities/
Cosmetics
Long-Term Management Plan
Strengthening the corporate structure• Challenging ourselves for the BEST solution• Strengthening the Company’s foundation• Investing in human resources

7

SANYO TRADING Corporate Report 2022

VISION2023
Food products

Strengthening the earnings base
• Enhancing business in certain fields• Developing new businesses• Accelerating globalization• Advancing new investment projects

Mobility
Generate added value by
providing products andservices anticipating theindustrial structure of the2030 and beyond

Massproduction

Contributing to
the SDGs

Contribute to realizing asustainable society byproviding livestock feedthat promotes renewableenergy and improved foodsafety and quality

Life science
Contribute to improving
quality of life by providing
products and services
focused on food andmedical care

SANYO TRADING Corporate Report 2022

8

Message from the CEO
Becoming a unique andaccomplished trading company
at the forefront of the industry
by anticipating changes in society
and challenging ourselves for
the BEST solutions following ourunwavering and enterprising spirit,and free and open corporate cultureLong-Term
Management
Plan
VISION 2023

Management
MissionPurposePresident & CEO

Challenging ourselves for the BEST solution
We will build a corporate structure that enables us to challenge ourselves for
the BEST solution, as stated in our Slogan, under the Management Mission,
Business Mission and Credo.

Strategy B

Strengthening the Company’s foundation
Maintaining a free and open corporate culture, a flexible organizational
structure and compliance with laws and regulations, we will apply IT,
advance ESG activities and strengthen the financial base.

Investing in human resources
We will increase investment in human resources by enhancing education
Strategy C and training, including the establishment of various new training programs,by flexibly utilizing diverse human resources and by making transfers thattake into account career development.

1. Group that rises tochallenges and provides
the best solutions
2. Continuous earnings
growthMasanobu Shintani

Strategy A

Enhancing business in certain fields
Strategy D We will pursue and enhance high-value-added business in niche areas inaddition to our core business fields.
Strategy E

Developing new businesses
We will launch projects to promote new businesses in which we can achievea certain level of results by 2023.

Strategy F

Accelerating globalization
We will accelerate globalization, making our bases in the USA, China andThailand hubs. We aim to achieve annual growth of 10% at overseas bases.

Strategy G

Advancing new investment projects
We will promote investment in projects that are related to the Company’s
current business fields and can be expected to contribute to (i) synergies withexisting businesses, (ii) future growth, and (iii) globalization.

Basic strategies
1. Strengthening the corporate structure

2. Strengthening the earnings base

Steadily executing basic strategies in pursuitof the opportunities in a changing environment

exist to ensure their customers receive a reliable supply of

Sanyo Trading achieved the numerical targets of the

supply chains are being disrupted. At the same time, theFour Focus Markets

five-year VISION 2020 long-term management plan ahead

declining birthrates, aging populations, and increasingly

Market/Significance Fields

of schedule in the fiscal year ended September 2017. In

severe impacts from climate change are increasing demandraw materials, which is of even greater importance when

November 2018, we then clarified our future direction andfor solutions to related social issues, such as for healthcare

our vision for the Company and adopted the new five-year

solutions, environment-friendly products, and renewableplan VISION 2023, Management Mission, and Slogan toenergy businesses. The purpose for our company’s

further advance and strengthen our continuing growth.

existence—to pursue the BEST solutions for our customers

I was head of the Corporate Strategy Department whenmaterials

Mobility

All types of mobility

and society—is especially important when the world

we were forming these plans and was appointed President

changing as dramatically as it is now. We view the changes

and CEO in December 2018, right after we announced

in the business environment as a golden opportunity to

VISION 2023. Since then, I have focused all of my energy

generate new sustainable growth and are steadilyon spreading our Management Mission throughout theadvancing strengthening the earnings base andCompany and implementing our long-term management plan.

strengthening the corporate structure, which are the two

The external environment has changed dramatically inSynthetic rubber, paint,

Fine Chemicals ink, coatings, electrical

basic strategies of our long-term management plan.

Objective

Division

We will contribute to the development of the materials
field by providing a stable supply of functional materials,
raw materials, new naturally derived materials, andother fine chemicals that complement technology andfeature environmental performance.
We will be an early provider of added-valuetransportation products and services designed for theindustrial structure in 2030 and beyond.

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

Sustainability

Renewable energy(biomass, geothermal,
marine)Livestock feed

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

Machinery & Environmental
Business Unit

Life Science

Food additives, cosmetics,
home health care,scientific instruments,
biotechnology, etc

We will provide various products and services,
particularly on food and medical care, to help improve
quality of life in new post-pandemic lifestyles and thecoming super-aged society.

Life Science Business Unit

New Business
Development
Department
Creating
next-generation
businesses acrossbusiness divisions

the four years since the launch of VISION 2023. Our
business has been impacted by the deepening trade

Ukraine. The supply chain disruptions during theBusiness units and professional organizations
working closely together to accelerate
the creating of new businesses
that will drive our future growth

pandemic and the sharp rises in material and parts prices

Strategies and measures to strengthen our earnings baseas the previously stagnant economy regains activity haveinclude enhancing business in certain fields, developing newstrongly impacted our business performance.

businesses, accelerating globalization, and advancing new

October 2020 is playing a major role in developing new

business a success between the people who developed it

friction between the United States and China, theworldwide COVID-19 pandemic, and Russia’s invasion ofdevelopment. Cultivating a new business into a successful

markets and are optimizing our business portfolio byoperation requires a process of identifying the seed for aselecting and concentrating each business unit’s

new business, developing it to a certain extent, and thenoperations into these fields.

transferring it to a business division. However, at that point

The New Business Development Department created ina disconnect can arise in the commitment to making theinvestment projects. Developing our business domains

businesses as the parent body of the development groups

and the people who will then carry it forward. From the

However, I believe that, while the changing business andmeans leveraging our strengths to dig deeper into marketsof the Industrial Products Business Units. The department

business division’s standpoint, it’s understandable that thesocial environments pose management risk, they can also

by pursuing high-value-added businesses in both our mainbrings together elite members from all development

people taking over would not immediately be as dedicatedproduce major business opportunities. Trading companies

and niche fields. We have set fine chemicals, mobility,

departments into a highly specialized team for businessto a business that is handed to them from outside, but

How the situation will play out is still uncertain.

9

sustainability, and life sciences as our future focus

SANYO TRADING Corporate Report 2022

SANYO TRADING Corporate Report 2022

10

Message from the CEO

that can doom its chances of success. The success of a

researching and developing coating films that activate theits strengths in the export of taurine, a functional material thatnew business depends on the enthusiasm of the employees

anti-Stokes fluorescence phenomenon to use sunlight tocontributes to maintaining human and animal health andresponsible for it.

create a cooling effect. We believe the innovative technology

improving QOL. In February 2022, we further enhanced theTherefore, people in the New Business Development

can address various social issues, particularly related toGroup’s business lineup in the life science field by welcoming

Department who are thoroughly familiar with a businessclimate change, and are working with the company to

Scrum Inc., a company specializing in single-cell analyticaldivision’s operations work closely with the division from andevelop practical applications and commercialize thedevices, which are attracting substantial attention as

early stage to explore and develop new businesses. Thatinnovative technology in a wide range of fields.

next-generation research tools. We followed that in

way they share the enthusiasm and strong sense of a

In September 2022, we signed a licensing agreement

project’s purpose, which enables a smoother and fasterwith Tide Ocean SA, of Switzerland, the world’s firstGeorge and Shaun Inc., a provider of healthcare services

transfer of the business and generation of synergies withcompany that is recycling Ocean Bound Plastic (OBP*),using AI. We are planning to help develop the Company’s

existing businesses.

which is the cause of the plastic pollution in the ocean.

monitoring service for senior care facility residents for

A recent example is the new sales business launched in

The agreement will allow us to provide the company’scommercialization as a high value-added service.

Japan for automotive benchmark data captured using highrecycled plastic products in Japan, which are made of

These and other moves have opened the door to aenergy X-ray scan technology manufactured by Caresoft,

high quality plastic manufactured using a low-carbon

number of promising new business projects in the four

automotive interior materials. We are also focusing onof the United States. The engineering service uses aemission manufacturing process. We plan to develop

priority business areas. The New Business Development

developing new business with the Japanese chemicallarge-scale X-ray CT to scan the interior of a complete

applications and increase demand for the plastic, which

Department and each business unit will be actively working

product manufacturers that are expanding into the region.

automobile without requiring disassembly to generate andwill support the decarbonization efforts of our clients andto develop and cultivate all of these new businesses.

analyze computer-aided design (CAD) data of components

encourage activities to recover OBP, particularly inparts, assembly methods, and materials. The increasing

developing countries. The business has potential to help

adoption of electric vehicles is expected to lead toachieve several of the Sustainable Development Goals by*Ocean Bound Plastic (OBP) is plastic waste that is discarded on land
within 50 kilometers from the shore and has a high probability of flowing
into the ocean. In 2010, some 31.9 billion tons of OBP was generated
worldwide, of which an estimated 4.8 billion to 12.7 billion tons ended up
in the ocean.

dramatic changes to the automobile internal structuresprotecting the environment, beautifying the oceans, andand components. The business is even attracting interest

creating employment in developing countries.

beyond our core component clients in the mobility field, as

In the feed field, we added the YPTECH to the Group inproviding supplies for the mass production and delivery of

Aggressively investing inhuman resources and IT
In addition to these growth strategies, VISION 2023 also hasa basic strategy of strengthening the corporate structure. As

Expanding into growth regions andstrengthening local customer support system

our management mission and slogan state, our mostimportant qualitative task is to provide our customers with

we have received significant interest from materials

2019 to boost our efforts to develop an import and sales

We are also steadily growing our global business from ourthe “BEST solutions.” To foster a Group-wide drive to rise to

manufacturers who are clients of the Rubber Businessbusiness for high-quality functional feed and feed additives.

hubs in the United States, China, and Thailand. In thethe challenge to provide the BEST solutions, we are

Unit and Chemical Business Unit.

We are harnessing all the Group’s strengths to offer solutions

fiscal year ended September 2022, we reorganized our

deepening our commitment to the unwavering andto issues faced by the Japanese livestock industry tobases to improve business efficiency by making ourenterprising spirit and management mission that we haveestablish a solid foundation for stable food supply in Japan.

operation in India a consolidated subsidiary and ourfollowed since our founding and building a platform where all

In the life science field, in April 2021, we conducted an

Singapore subsidiary a wholly owned subsidiary and by

employees can thrive in a free and open corporate culture.

absorption merger with Global Trading Co., Ltd., bringing inreorganizing our Thai subsidiary. We also continued to

One way we have been working to bring that about is by

The sustainability field is another area where new
businesses are rapidly growing. A recent example is ourinvestment and business alliance formed in October 2022with SolCold, a start-up company in Israel that isHigh

Biotechnology(Scrum)Businesses
Being Cultivated

Growth BusinessIndustrial
materials

Market growth rate

Discover new projects,
cultivate future fundamental businesses
Supporting all companies

RenewableenergyCaresoft, IEE, Perstorp, Tide Ocean, etc.

Strategic resource
allocation

InvestMaterial
solutions

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

Businesses Requiring
Further Study
Low

SANYO TRADING Corporate Report 2022

Chemicals

RubberLivestock feed
equipment
Business growth cycle

Scientificinstruments

Relative market share*
Current gross income
Future gross income potential

11

November by forming a capital and business alliance with

Fundamental BusinessHigh*Relative market share is the share held by the Company compared to the share held byleading company in the same market

develop the operation of the two new overseas businessreforming our personnel system and, after four years ofoffices added in the fiscal year ended September 2021.

preparation, we introduced a new personnel evaluation

Opening the office in Laem Chabang, Thailand, insystem in October 2021. The new system eliminates theNovember 2020 was one of these moves. Laem Chabangseniority-based approach and replaces it with a mechanism

Port in Thailand’s eastern Chonburi Province is the country’sof treatment and selection based on a person’s specificlargest port for international cargo transaction volume. The

duties and results regardless of seniority. We believe thisThai government is currently promoting a strategy tochange will better foster a corporate culture that encourages

promote investment in the country that is expected toeach employee to proactively take on challenges.

attract many companies from Japan and around the world

Investment in human resources is also essential. One way

to set up business in Eastern Thailand. Our Laem Chabang

we are investing in developing our younger employees is by

Office is providing prompt and high-quality services to meetproviding a language training program at our New Yorkthe various needs of the companies moving into Thailand.

office. We also provide mid-level employees with

Following the trend of Japanese automakers constructing

opportunities to deeply research and study new business

new factories in Alabama, USA, we opened a new office inthemes, appointing administration division personnel as

the state in January 2021. The office is promptly andGroup auditors to gain experience, and offer otherdiligently building relationships with the new plants andopportunities designed to cultivate business professionals.

SANYO TRADING Corporate Report 2022

12

Message from the CEO

Through these and other programs, we are providing

to issues caused by climate change to be of the highest

education and training geared to individual abilities andpriority, and in December 2022 announced our support ofcareer objectives so our employees can make the most of

the Task Force on Climate-Related Financial Disclosures.

their potential.

We intend to follow the TCFD recommendations by

We also have a job rotation system so employees cancontinuing to evaluate climate change-related risks andgain knowledge, perspectives, and skills by experiencing

opportunities, incorporate them into our management

various jobs, and last year introduced an in-housestrategies, and enhance our related information disclosure.

Earnings Performance Since the Company Listing
Net sales (millions of yen)

We are also trying new ways to create an environment that

2.3 times
60,000

These activities generated net sales of ¥111.2 billion for
the fiscal year ended September 2022, raising sales above

making the casual office attire policy a permanent policy.

¥100 billion for the first time despite in the uncertain

Ordinary income

2.6 times

2,366
0
2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

0

During the final year of
VISION 2023 in the fiscal
year ending September
2023, we will lay thegroundwork for the next
long-term vision and makefurther refinements to ourbasic policy while
maintaining the same
fundamental direction.
Priority initiatives
Cultivating human resources
Developing new projects(FY ended September)business conditions. We also posted record highs inordinary income and all income categories.

continue fortifying the high value-added in our businesses

hallmark since our founding to rise. We will rise to theto maintain ROE at high level.

challenge to provide the best solutions and be a uniqueinformation technology is also essential. With that objective,

Demand for industrial material products included a directin October 2022 we added Cosmo Computing System Co.,

impact on automotive interior materials from the production

We continue to focus on maintaining consistentand accomplished trading company at the forefront of theLtd., to the Group by acquiring all of its outstanding shares.

cuts of Japanese automakers. At the same time, the rubber

shareholder returns over the long term by steadily

industry that is respected worldwide. We look forward to

We plan to use the company’s strengths in software

products were in solid demand throughout the year as

implementing our growth strategy, improving capitalthe continued support of our stakeholders.

development and digital service construction to develop

suppliers stocked up inventories in preparation for when theefficiency, and steadily raising our dividend per share payout.

Group information systems in-house, to flexibly build

automakers ramp up production again. Chemical products,

systems optimized for our business, and to apply DX towhich include paints and coating materials, also received

People create work, work elevates people

transform our business model so we can provide even higher

strong demand through the year and provided a significant

Sanyo Trading celebrated the 75th anniversary of its

value-added solutions to our customers.

contribution to earnings.

founding in August 2022. One of the main themes of the

Many commodities were in tight supply during the year

new long-term management plan that we will launch in

Placing sustainability at the center ofmanagement and using our business toaddress social solutions

owing to the supply chain disruptions from the COVID-19

October 2023 will be to lay the foundation for ongoingpandemic and the return of demand when economic

growth through our 80th, 90th, and 100th anniversaries andactivity resumed. However, the strong relationships of trust

further enhance our corporate value. I believe that cultivating

VISION 2023 emphasizes ESG and sustainability as key

we have built with our suppliers through the unique

our human resources and developing our business will be theelements for strengthening our corporate foundation.

business model of “one product, one supplier” we have

key factors that will enable us to achieve sustainable growth.

Coexistence and coprosperity with our customers,

followed since our founding minimized the negative

Becoming stronger in these two areas will create a virtuous

suppliers, shareholders, employees, and all stakeholders

impact. The dedication and efforts of our employees tocycle of “people creating work and work elevating people.”has been an emphasis of our Company since the start, andkeep the Company growing even in the harsh business

in April 2022 we established the Sustainability Committee toconditions played a huge role as they refused to let ourchange with the times. In the current environment offurther clarified this management stance and step up our

past performance make them complacent and diligently

dramatic change, we need to do more than simply respondefforts in this area. In July 2022, we introduced our Basic

worked to further strengthen the trust between theto problems. For us to be able to address an issue properly

Policy, which places sustainability at the center of ourCompany and our customers and suppliers.

and effectively, each of us needs to be aware of the issues

management principles, and also identified specific issues

We also posted record sales and operating income in

Of course, the qualities required of human resources

and understand their essence. To ensure our company hasof materiality (priority issues) for the Company to address.

our business overseas in fiscal year ended September

an abundance of the self-direct human resources we need,We will act on this materiality by increasing the range of2022, as the operations benefited from the organizational

the new long-term management plan will focus onreforms as well as the weaker yen.

strengthening our ability to cultivate human resources andenvironment-friendly products we handle and by using ourbusiness to address social issues by providing solutions that

On a sales basis, overseas business grew 17% year

help people live safe and comfortable lives. At the same time,on year, far exceeding the VISION 2023 target for 10%

we will strengthen our governance system and promoteannual growth.

diversity in our workforce to establish a strong managementfoundation for sustainable growth. We consider responding

13

6,299

Record-high sales and income evenin the uncertain business conditions

introducing free address workspaces and, after a trial period,

business productivity and quality, but effectively using

10,00048,070supports communication and work flexibility, including byStrengthening our human resources is key to raising our

20,000111,250
Net sales

recruitment system to give highly motivated employees
more opportunities to pursue their interests.

Ordinary income (millions of yen)

120,000

SANYO TRADING Corporate Report 2022

ROE did not reach the VISION 2023 target of 15%, but
the 11% was the highest in our industry. We intend toon creating an environment where employees are fully
empowered to take on challenges.
At Sanyo Trading, we will continue uniting the power ofour employees under the unwavering and enterprising spirit
and the free and open corporate culture that has been our

Masanobu Shintani President & CEO
SANYO TRADING Corporate Report 202214

Chemicals Segment

Rubber Business Unit

Business Overview
The Sanyo Trading Group consists of business divisions organized around our product areas comprising three reporting
segments of Chemicals, Machinery & Industrial Products, and Overseas Subsidiaries. The overseas segment comprises
independently management units and is organized as its own segment in order to allocate management resources andevaluate the performances of each subsidiary.
The Chemicals Segment posted year-on-year increases in both net sales and operating income in the fiscal year
ended September 2022 with, the Machinery & Industrial Products Segment recording higher net sales and lower
operating income, and the Overseas Subsidiaries Segment reporting higher net sales and operating income.
Net
Sales*2

Chemicals Segment

111.2

Demand continued strong for synthetic rubber and auxiliary materials for in a wide range of industries.
Electrical materials and food additive exports increased, and the environmental chemical products
business sales developed into a full-fledged operation.

billionyen

Operating
Income*2

5.3

billionyen

Business Units and Subsidiaries

Rubber Business Unit

Chemical Business Unit

Life Science Business Unit
(Material Solutions Department)

34.0%

The Rubber Business Unit is core rubber industry supplier, importer,and exporter in Japan and overseas. The unit is focusing on
expanding sales of next-generation materials to become a major
distributor of synthetic rubber and auxiliary materials.

36.3%• Chem-Inter Corporation,• Sanyo Life Material Co., Ltd.

Strengths

Opportunities• We supply a wide range of rubber products to customers
around the world. Our main partner is ARLANXEO of Saudi
Arabia, the world’s largest producer of synthetic rubber.
• Our global development network enables us to provide
seamless supply even when customers change production
locations overseas.
• We supply next-generation products, such as epoxidized natural
rubber environmental materials and plant-derived carbon neat.

• The adoption of electric vehicles is boosting automotive demand,
which accounts for half of all synthetic rubber demand, forrubber materials used for weather resistance, heat dissipation,and lightweight applications. The unit is focusing on developing
high-value-added, next-generation materials.
• We are expanding capacity to handle major commercial materials
overseas, and to meet demand for synthetic rubber forJapanese companies in Japan and overseas.

We are focusing on accelerating our global
expansion and increasing sales of functional
materials and naturally-derived materials.
Yasushi Komiya

Machinery & Industrial Products Segment

Executive Officer and Rubber Business Unit, General Manager

Sales of industrial products remained at the same level as the previous fiscal year. Scientific equipment
sales were strong for surface property testers and particle dispersion measuring instruments. Resource
development product sales were solid for ocean resource mining equipment and geothermal
development equipment.

The fiscal year ended September 2022

clear in the automobile market, which

produced by ARLANXEO, silicon

was characterized by ongoing tightaccounts for half of all demand forrubber made by Dow Toray of Japan,

supply of products imported from Europe

synthetic rubber. In our business unit,

and fluororubber and heat dissipationand the United States, soaring prices,

we continued our activities from theadditives and other high-performanceand reduced Japanese automakerprevious year evaluating and applying

fillers produced by Dahon, the leading

production in Japan and overseas. In

new applications for next-generation

rubber manufacturer in China.

these conditions, we recorded strong

materials, such as biomass-derived

Japanese manufacturers aredemand for synthetic rubber and auxiliary

carbon fillers and epoxidized andproducing a growing percentage of theirmaterials from Japanese automakers

acrylated natural rubber. In the industrial

rubber overseas (in Asia). Our unit is using

and a wide range of industries, including

field, we responded to the outlook forthe close cooperation between ourconstruction machinery, homegrowing demand for weather resistance,

members in Japan and overseas toappliances, and information equipment.

electrical insulation, heat dissipation andprovide the same quality of products andflame retardant applications byservices overseas as in Japan as we seek

Overseas Subsidiaries Segment

drastically during the year as the markets

expanding sales of our top-of-class

to expand our market share and becomegave heightened attention to ESG andimport products of ethylene propylene

the leading Japanese trading company

Sales were strong for highly functional resins in the United States, automotive parts and component
materials in China, and rubber products in Thailand and Indonesia.

the shift to electric vehicles became

diene monomer (EPDM) rubber

providing raw materials to niche markets.

Business Units and Subsidiaries

32.7%
Industrial Products
No.1 Business Unit/
Industrial Products
No.2 Business Unit
• Freeman (Japan) Co., Ltd.

Machinery & Environmental
Business Unit
• Cosmos Shoji Co., Ltd.
• YPTECH Co., Ltd.
• Sanyo Machinery Co., Ltd.

Life Science Business Unit
(Scientific Instruments
Department)

45.9%• Nihon Rufuto Co., Ltd.
• Sanyo Technos Co., Ltd.*1• Scrum Inc.*1

The external environment changed

Affiliated Subsidiaries

TOPIC

33.3%

High expectations for the Company in Japan’sreorganizing synthetic rubber industry• Sanyo Corporation of America(USA)• Sanyo Trading (Shanghai) Co., Ltd. • Sanyo Trading Asia Co., Ltd.
(Thailand)(China)• SANYO TRADING (VIET NAM) CO., LTD. (Vietnam)• PT. SANYO TRADING INDONESIA (Indonesia)• SUN PHOENIX MEXICO S.A. de C.V. (Mexico)• Sanyo Trading India Private Ltd.*1 (India)*1 Consolidated results for the fiscal year ended September 2022
*2 The ratios of sales and operating income are based on simple addition of the figures from each

15

SANYO TRADING Corporate Report 2022

17.9%

Domestic synthetic rubber manufacturers are reorganizing their material supply chains in reaction totheir aging production facilities and the shift to high-value-added, next-generation materials. At thesame time, our customers are continuing to shift production to other Asian countries, and theautomobile industry is rapidly shifting to electric vehicles. We will increase the volume of first-classimported products, such as from ARLANXEO, the world’s largest produce and sell of rubber, to fully
meet the demand for synthetic rubber from Japanese companies both inside and outside Japan.

Epoxidized natural rubber

segment.

SANYO TRADING Corporate Report 202216

Chemicals Segment

Machinery & Industrial Products Segment

Chemical Business Unit

Industrial Products No.1 & No.2
Business Unit

The Chemical Business Unit sells high-performance products andprovides high-level technical services to dozens of chemical
manufacturers around the world with which we have built close andstrong relationships of trust.

Strengths

Opportunities

Strengths

Opportunities• We handle a wide variety of products centered on functional
chemicals for inks, adhesives, coatings, and plastics, and develop
and acquire new products, including environment-friendly products.

• We anticipate growing demand UV ink, our core product.
• We have established stable production volume of UV ink inJapan and expect to increase production overseas.
• We plan to step up our sales activities in the Asia region andall markets.

• We provide consistent support from order receipt todevelopment, integration, mass production management, andreplacement parts for older models. We also provide technicalsales support for overseas parts manufacturers.
• We accommodate manufacturer requests to customize overseas
products to Japanese quality standards.

• We are focusing on meeting need for enhanced automobileinterior functionality accompanying the increase of electric vehicles
worldwide, particularly in China. We are also providing moresophisticated semiconductors and diversifying our procurement
sources to meet the diversifying applications of IoT technology.
• We are also focusing on developing equipment to meet thegrowing need for interior space comfort and recyclability withthe aging of the population.

We will contribute to society by using our high-level technologicalcapabilities to provide optimal solutions for customer and by
expanding our offerings of environment-friendly products.

We are focusing on meeting new automotive interior
component needs, developing new automotive components,
and developing businesses at our global bases.

Naoki Tanahashi

Rintaro Harada

Akira Watanabe

Senior General Manager and Chemical Business Unit, General Manager

Industrial Products No.1
Business Unit, General Manager

Industrial Products No.2
Business Unit, General Manager

In the fiscal year ended September(headquartered in Sweden) for resin

high-end markets such as electronic

The Industrial Products Business Units

next-generation automotive interiorand EV-related domains. For example,

2022, sales continued growing for

applications. We are also contributing

materials, sensors, motors, and battery

recorded strong earnings in the fiscal year

materials and services for highly

the No.1 Business Unit handles the

products we have added in recent

to creating an environment-friendly

chemicals. Our domestic growth

ended September 2022, despite thefocused on safety, security, comfort,

sensing domain, which includes IEE

years and were strong for importsociety by acquiring International

strategy also includes actively

strong impact from Japaneseand environmental performance. We

S.A.’s advanced vehicle occupant

products, including for core products

Sustainability and Carbon Certificationconsidering M&A. Our growth strategy

automakers reducing production output

have a two-fold approach of directly

detection technology Life Detection

for paints and inks, silane coupling(ISCC) PLUS under the biomass

overseas will focus on businessdue to the shortages of semiconductors

proposing products to customers andAssistance System (LiDAS), and theagents for adhesives, and flame

certification system and by following

expansion in Thailand, Vietnam,

and parts and the sharp rise in purchaseindirectly proposing products andNo.2 Business Unit covers theretardants for engineering plastics. We

the mass balance system for managing

Indonesia, and other ASEAN countries

prices from the steep devaluation of theservices that have been enhanced withbenchmarking domain of automobile

also stepped up efforts to develop

and securing biomass raw materials

and will include considering

Japanese yen in the second half.

value-added features.

disassembly and examination, which

new environment-friendly products forand recycled raw materials

cross-border M&A.

resin materials.

manufactured in the supply chain.

Our ESG activities are focused on

Our growth strategy is to become

Our ESG activities were aimed at

We select and concentrate newincludes being the Japan distributor of

improving our electricity usage

development activities by delineating theCaresoft Global products. The unit

efficiency and developing recyclable

business domains for the two businesscollects and sells full-vehicle 3D CAD datamaterials and products.

units. The No.1 Business Unit

acquired from ultra-large CT scans,

Our growth strategy is to makespecializes in thermal management,

provides teardown data and various

introducing environment-friendly

the top Japanese trading company

products. To help mitigate climate

providing raw materials in nichechange, we have begun sellingmarkets by handling high-value-added

maximum use of our close relationships

sensing, and autonomous driving, andanalysis reports as well as proposals for

products made by Perstorp Holding AB

niche products while also focusing onwith Japanese automakers (and Tier 1

the No.2 Business Unit focuses on

reducing costs.

automotive suppliers) and to offer new

benchmarking, comfort, sustainability,

TOPIC

ISCC PLUS Certification
International Sustainability and Carbon Certification PLUS is a biomass certification system witha mass balance system for managing and securing biomass raw materials and recycled raw
materials manufactured in the supply chain. We obtained certification in October 2022. We willcontinue to contribute to society by expanding our range of environment-friendly products.

17

We develop, import, and sell high-value-added, high-performance parts forautomobile interiors. We handle a wide range of products that increase theadded value of automobiles.

SANYO TRADING Corporate Report 2022

TOPIC

Opening of the Sanyo Solution Gallery
in the Mizunami Exhibition HallIn March 2022, we opened the Sanyo Solution Gallery in the Mizunami Exhibition Hall in an unused
school gymnasium in Mizunami City, Gifu Prefecture. The hall displays some electric vehicles andprovides data and actual parts from an electric vehicle that is not yet available in Japan. In the
future, we plan to exhibit automotive products from various Group companies and create a systemfor presenting our products to customers.

The Sanyo Solution Gallery in the unused
school gymnasium

SANYO TRADING Corporate Report 202218

Machinery & Industrial Products Segment

Chemicals Segment/Machinery & Industrial Products Segment

Machinery & Environmental
Business Unit

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

The Machinery & Environmental Business Unit will introduce to Japan
outstanding overseas technologies, such as powdered food, feed,
and fertilizer and woody biomass granulators, and promote foodsafety and renewable energy in Japan.

Strengths

Opportunities

Strengths

Opportunities• CPM commands over 90% of the market for feed pellet mills
and provides continuous maintenance services.
• In the Company’s woody biomass equipment, its wood pellet
gasifiers with combined heat and power (CHP) provide aneffective use of domestic wood materials and contribute tocommunities through our renewable energy businesses.

• We are leveraging YPTECH’s network of livestock farmers tomeet the expected growing demand for manure compost
pelletizing equipment.
• With the quest to realize a decarbonized society expected tolead to increasing production of woody biomass fuel in Japanand overseas, we will market our pellet equipment to sawmills
and focus on increase pellet production capacity in Japan.

• Global business foundation and an integrated network of Group
companies developing businesses.
• Human resources with expertise and specialized knowledge at ourdomestic Group bases, and businesses driven by team power.
• Materials and scientific equipment for cutting-edge technologies
in the life science field and industry-academia collaborations todevelop products.

• The aging of society is leading to increasing health awareness,desire to raise QOL, and growing demand for pets.
• Focus of businesses in the areas of Japan’s core strategy to be a“science and technology nation” and the worldwide effort for
decarbonization, following the Paris Agreement.
• Various initiatives, including the SDGs.

We will help create a sustainability and environment-friendly society
by effectively using domestic and foreign resources and by promoting
food safety and the use of renewable energy.

We are actively working to create businesses that
improve people’s health and lifestyles.

Yoshifumi Oyabu

Koji Taguchi

Machinery & Environmental Business Unit, General Manager

Executive Officer and Life Science Business Unit, General Manager

In the feed processing equipment

Sanyo Trading, Takenaka Corporation,

preserve Japan’s forests by supporting

In the fiscal year ended September

biotechnology field and sells thebusiness, postponements andNaito Kogyo, Cypress Sunadaya, andrevitalization of local economies. Other

2022, sales of life science products

reagents and consumables used withfood and medical equipment to meetcancellations of core equipment projects

Dainippon Consultant.

activities include using wind andwere impacted by the stalled logistics

the devices. The company also offers

the society’s needs for better in-home

Our ESG activities include promoting

geothermal power to generate renewable

operations, but exports increased forcontract services such as for peptide

medical care and to improve people’s

profitability of consumable parts forsales of compost pellet manufacturing

energy, developing marine resources tohigh-quality and reliable Japanese-madesynthesis and antibody production.

health and quality of life. We plan tocore equipment in the fiscal year ended

equipment to reduce the use of chemical

contribute to Japan’s energy supply, andmaterials, notably high-performance

Our ESG activities including selling gas

September 2022.

fertilizers in line with the expansion ofusing our livestock business to improveresins to North America and electricaland stable isotope ratio analyzers used toconcentrator equipment that will further

and the devalued yen eroded thesoon introduce a new oxygenorganic farming methods advocated infood safety and increase the value-added

materials and the functional material

measure the volume of greenhouse gas

improve patient QOL. In the agriculture,

impacted by the postponement of a

the Green Food System Strategy of thein food in Japan.

taurine to Asia. Scientific instrument

emissions, knowledge of which helps

food additives, and cosmetics fields,

major project we were aiming to win, but

Ministry of Agriculture, Forestry andsales were strong for interface science

realize a decarbonized society andwe will focus on offering products

the business received an order for the

Fisheries. Other initiatives include

assessment equipment and particle

combat climate change. In the agriculture

following the theme of safety andcore equipment of a biomass power

promoting renewable energy businesses.

dispersion measuring instruments. Our

and agrochemicals fields, we offer

security. In addition, we will apply ourplant in Uchiko, Ehime Prefecture. The

Our growth strategy is to use ourefforts also include making Scrum Inc.

products with low environmental impact

decarbonization and SDGs initiatives as

Uchiko Ryuo Biomass Power Plant was

woody biomass business to revitalize

a subsidiary to continue developing ourand are promoting sales of films that

we accelerate sales of cutting-edge

constructed by Uchiko Ryuo Biomass

forestry by supporting efficient use of

bioscience business. Scrum imports

use PCR resin and lithium-ion battery

scientific instruments andEnergy, a consortium of five companies;

domestic forest resources as well as toand sells measurement, analysis, and(LiB) materials for use in automobiles

environment-friendly materials.

analytical instruments used in theand consumer products.

The woody biomass business was also

Uchiko Ryuo Biomass Power Plant

TOPIC

TOPIC

Uchiko Ryuo Biomass Power Plant commences operation
In October 2022, the Uchiko Ryuo Biomass Power Plant commenced operation in Uchiko,
Ehime Prefecture. The combined heat and power (CHP) project is generating electricity usingwood pellets harvested by the local forestry cooperative from unused wood materials collectedduring the thinning of forests. Heat generated from power generation is supplied to an adjacentfacility. Constructed with financing support from the town of Uchiko, the power generation
facility is a wooden building constructed with local materials with the intention of being leading
model for community collaboration in a woody biomass power generation operation.

19

Our growth strategy is to use our

SANYO TRADING Corporate Report 2022

Bioscience business boosted by bringing inleading bioscience equipment firm Scrum as a subsidiary

Opening ceremony at the Uchiko Ryuo
Biomass Power Plant

Bringing in Scrum as a consolidated subsidiary in February 2022 added a highly regarded
company in the biodevices industry. Scrum has outstanding technical sales capabilities andspecializes in highly specialized niche and high value-added products. We plan to generatesynergies with the Life Science Business Unit’s Scientific Instruments Department tostrengthen marketing, expand our sales channels, and leverage our overseas bases.

Biotech equipment and reagentsSANYO TRADING Corporate Report 2022

20

Overseas Subsidiaries Segment

TOPIC

The Overseas Subsidiaries Segment is focused on expanding
business in Japan and overseas from its 17 bases in 10 countries
outside than Japan. Since Sanyo Trading’s listing, plans to accelerate
the Group’s global expansion with the target of achieving a 10%
compound annual growth rate overseas.

History of Our Overseas Network

Establishedrepresentative
office in
Ho Chi Minh City

Establishedrepresentative
office in
New York

North America

Base established: 1954

Jan. 1954

Established PT.
Sanyo Trading
Indonesia in
Indonesia

Establishedrepresentative
office in
New Delhi, India

Oct. 1992

Sep. 2010

Aug. 2014

Expand sales in existing business fields and develop new businesses
Sanyo Corporation of America is Sanyo Trading’s oldest company and was its firstoverseas base. The representative office will celebrate its 70th anniversary in 2023.
Our North America operation currently has three bases of the main office in New Yorkand offices in Novi, Michigan, and Huntsville, Alabama, selling high-performance

Sep. 1990

Aug. 2002

Jun. 2013

Jun. 2015

Established
San-Thap
International (nowSanyo Trading Asia)

Established Sanyo
Trading (Shanghai)Co., Ltd. In China

Established Sun
Phoenix Mexico
S.A. de C.V. in
MexicoBegan capital participation inBestrade Precision Singapore
Pte. Ltd. (now Singapore Sanyo
Trading Pte. Ltd.) with acquisitionof 85% of outstanding shares

resins and industrial films, functional fillers, automotive parts, and other products inthe chemical, life science, rubber, and industrial products business units. In eachbusiness unit, we are investing and development new businesses in the UnitedStates, which is at the forefront of a wide range of business fields.

China

Base Director: Miki Sekino

Base established: 2002

Overseas Subsidiaries Segment Net Sales and Operating Income
Net sales (Left axis)

Operating income (Right axis)(Millions of yen)

Driving overseas growth by handling a wide variety of products(Millions of yen)

40,00036,9922,000

In 2002, Sanyo Trading (Shanghai) celebrated the 20th anniversary of theestablishment of the representative office. The company currently handles a wide

30,0001,500

variety of industrial materials, rubber, life sciences, and chemicals through four bases

24,689led by the head office in Shanghai and offices Guangzhou, Tianjin, and Hong Kong.
The Chinese market has been deeply affected by the strict pandemic countermeasures

12,602in recent years, including the lockdown in Shanghai during April and May 2022.

10,000

Despite the severe conditions, the creative efforts of our local staff have generated
ongoing growth, and the Chinese operations will continue to actively expand its
business and be a driving force for Sanyo Trading’s overseas bases.

Asia

Base Director: Masaaki Itoyama

Base established: 1992

Sanyo Trading Asia, which has the second longest history of Sanyo Trading’s
overseas affiliates, celebrated its 32nd anniversary in 2022. The company handles
rubber, chemicals, industrial materials, and life science products. In November 2020,
we opened a second base, Laem Chabang Office, in Thailand’s Chonburi Province,
which is the gateway for the country’s Eastern Economic Corridor (EEC). We are also
developing new businesses to serve as a bridge between Thailand and Japan andof the country’s primary development projects.

21

SANYO TRADING Corporate Report 2022

9,879
9,383
393 8,208356
226

Base Director: Kenichiro Mohara

12,353502 10,751
366
358

15,093727

879

18,95018,227
880
839

978

1,000

500

0

0
2011

Cultivating new businesses that will serve asa bridge between Thailand and Japanthat fit the framework of the Bio-Circular-Green (BCG) Economy Model, which is one

19,61020,000

1,235

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

Mass production and delivery begun in Alabama
Sanyo Trading is continuing activities to expand business centered on its bases in
the United States, China, and Thailand, and is actively entering regions where it
anticipates market growth in accordance with its strategy to “accelerate global
development” set in its VISION 2023 management plan. Sales of overseas
subsidiaries grew at a compound annual growth rate of 17.1% over the five years
through the fiscal year ended September 30, 2022.
The Alabama office opened in the United States in January 2021, has been
promptly and diligently meeting the needs and building relationships with the newplants of Japanese automakers in the region. The office began delivering parts formass production of automobile interior components in January 2022. The office isalso seeking to develop new business with Japanese automobile and chemical
manufacturers in the region.

The Alabama office in the state of Alabama,
United States

SANYO TRADING Corporate Report 2022

22

Sustainability Policy/Material Issues
Sanyo Trading has designated sustainability initiatives as a material issue for management. By “challenging
ourselves for the BEST solution,” we work to resolve social issues with the aim of realizing a sustainableinternational community and at the same time achieving medium- to long-term business growth.
Under our Sustainability Committee, newly established in April 2022, we will accelerate initiatives to addressmaterial issues.

Designating Sanyo Trading’s Materiality
In July 2022, we designated our materiality (material issues
for management) with a view to achieving sustainablecorporate value increase through our businesses. While

Basic Sustainability Policy

Step1

Recognition ofissuesStep2

Ranking ofimportance
Step3

Philosophicalframework

Designation ofmaterial issues

Interconnection of concepts

MissionSolution

Designatematerial
issuesMaterial issues
for management
Sustainability
initiatives= Materiality

Credo

Realizea sustainableinternational
community

Approach
SloganChallenging
ourselves for
the BEST solution

ResolvesocialissuesBalanceboth aims
Achievemedium- tolong-termbusiness
growth

To identify and classify the issues, we carriedout a Group-wide brainstorming program on
the themes of “resolving social issues throughour businesses” and “strengthening of thebusiness base to support sustainable growth.”
We evaluated the issues on two scales:
degree of importance for stakeholders anddegree of importance for the Group.

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

Sustainability Committee established in
April 2022
We established a Sustainability Committee whose
representative is the executive officer in charge of
Administration Divisions. The other committee members
are the executive officer in charge of Business Divisions
and the general managers of the Human Resources &General Affairs Department, Finance & Accounting
Department, IT Promotion Department, and Corporate
Strategy Department. In 2022, having formulated our Basic
Sustainability Policy, we prepared the ground for the next
long-term management plan by revising our materiality andprogressing with other initiatives including disclosure inaccordance with the TCFD recommendations.

Material Issues

Initiative theme

Resolvingsocial issues
throughbusiness

23

SANYO TRADING Corporate Report 2022

Sustainability promotion structure

Contribute to healthy,
secure, and comfortable
lifestyles throughdiscovery and stablesupply of new products

Buildinga Resilient
Management
Structure

Ensure financial
soundness and strengthen
corporate governance andlegal compliance

Empowering
HighlyMotivated andDiverse Human
Resources

Nurture human resources tocreate new value and showrespect for diversity byproviding an environment it
can flourish in

Instructions

President & CEO
Sustainability Committee*
Cooperate dependingon the issue

Business Divisions

Contribute to climatechange countermeasuresand a circular economy byhandling environmentfriendly products

Providing
Enriching
Lifestyles

Board of Directors
Submission and Reports

Secretariat

Administration Divisions*Committee members (as of December 23, 2022): Executive officer in chargeof sustainability (executive officer in charge of Administration Divisions),
executive officer in charge of Business Divisions, general managers of
Human Resources & General Affairs Dept., Finance & Accounting Dept., IT
Promotion Dept., and Corporate Strategy Dept. (six members in total).

Material
IssuesVery highImpact on the Group’s business

Sanyo Trading’s Materiality (material issues)

Reducing
environmental
impactSustainability Promotion Structure

Very highImpact on stakeholders

At Sanyo Trading, we have set our Management Mission, “With an unwavering and enterprising spirit,and a free and open corporate culture, we will supply the best solutions in a flexible and timely fashion,
working to realize a process of ‘co-creation’ by which we contribute both to the sustainable
development of the international community and the happiness of our employees.”
Under this Management Mission, the Sanyo Trading Group follows the Business Mission and Credo,
positions sustainability initiatives as an important management task, and strives to provide solutions to social
issues, including reduction of environmental impact, by challenging ourselves for the BEST solution, aiming
to build a sustainable international society and achieve medium- to long-term corporate growth.

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

Strengthenbusiness basefor sustainablegrowthInitiative details• Began handling environment-friendly chemicals produced using
renewable energy and recyclable raw materials by Perstorp
Holding AB (Head office: Sweden)• Began supply to the Japanese market from September 2022 of thehigh-quality plastic material “# tide” produced with ocean-boundplastic as* raw material using a world-first technology (see Page 26)• Sales launch on Japanese market from 2023 of sensor
developed by IEE S.A. (Head office: Luxembourg) to prevent
accidents caused by children being left unattended in vehicles(see Page 27)• Reorganization in February 2022 to make a subsidiary of Scrum
Inc., which is engaged in the import and sale of analytical andmeasuring instruments for use in biopharmaceutical development
and related reagents and consumables. Scrum Inc. also provides
peptide synthesis, antibody manufacturing, and other outsourced
services (see Page 28)• Maintenance of a solid financial base to optimize the businessportfolio and enable strategic investment in growing markets• Group adaptation to digital technology by bringing systemdevelopment in-house through M&A• Provision of environment enabling diverse workstyles, e.g.
promoting health and productivity management, introducing
telework and staggered work hours, and offering up to two
years of childcare leave• Enhancement of training system through overseas training,
foreign language training, various external training programs,
e-learning, rank-based training, etc.

SANYO TRADING Corporate Report 2022

24

Materiality Initiatives

Reducing Environmental Impact

Addressing Climate Change

Promoting Handling of Environment-friendly Products

Endorsement of TCFD Recommendations
Sanyo Trading has designated addressing climate change
as one of the material issues it is addressing under theheading of “reducing environmental impact” and in
December 2022 declared its endorsement of the TCFD*
recommendations. Going forward, in accordance with the
TCFD recommendations, we will assess climatechange-related risks and opportunities and reflect them in
our management strategy and also enhance related
information disclosure.
* TCFD: Task Force on Climate-related Financial Disclosures. Established in2015 by the Financial Stability Board (FSB) at the request of the G20. Its
recommendations state that enterprises should assess the financial
impact of climate change-related risks and opportunities and thendisclose related information
on governance, strategy,
risk management, andindicators and targets.

Governance
Basic management policy on climate change and related
business activities and corporate policies and strategies areplanned, drafted, and presented by the Sustainability
Committee, which is under the direct control of thepresident. The Board of Directors oversees this process
and issues relevant instructions where necessary. It thentakes account of climate change and other sustainability
issues when discussing and deciding on important matters,such as management policies and annual budgets.
For detailed information please see page 23:
Sustainability Promotion Structure.
Operating policy/related issues
2022

2023–24

Sustainability
Committee· Meets once every three months in principle· Reports progress in activities to address key issues· Collects information and exchange viewsby involving external experts

Initiatives toaddress key
issues· Formulation of a basic
sustainability policy· Revision of materiality· TCFD initiatives, etc.

· Enhancementof information
to disclose

Strategy
We analyze the changes in our operating environment
caused by climate change and classify the associatedfactors into “transition risk” and “physical risk.” We thendesignate and evaluate associated risks and opportunities
for the Group’s businesses. To assess the impact on ourbusinesses, we identify items with large impact andundertake related scenario analysis. We identify transition

25

SANYO TRADING Corporate Report 2022

risk under the headings of regulation, technology, markets,and reputation, while physical risk is divided into urgent
and chronic risk. Opportunities meanwhile are analyzed interms of products and services and resource efficiency.
Risk Management
In accordance with our Risk Management Regulations, weensure a clearly defined management system by specifying
the divisions responsible for different types of risks andmanaging risks exhaustively and comprehensively,
including of climate change-related risk. The president
appoints a director in charge of risk management.
Additionally, the Risk Management Committee meets inprinciple every six months. In this way, we undertake
integrated monitoring of the risks intrinsic to Sanyo
Trading’s operations and the risks it needs to avoid in orderto ensure business continuity. This enables prompt
response to changes in the risk landscape. The committee
reports regularly to the Board of Directors with a risk
management overview, including the response measures
to be taken if a risk to be avoided emerges. For
subsidiaries, a system to preempt losses has been put inplace under the Risk Management Regulations. Its
measures include holding interviews with the representative
directors and other relevant personnel as required.
Indicators and Targets
We measure our emissions of greenhouse gases (GHG)
and are progressing with initiatives to reduce
environmental impact.
Given the scale of the Group’s business, our current
GHG emissions volume is low. We have therefore not set atarget figure for emissions reduction at this stage. Goingforward, we will continue to monitor GHG emissions
regularly. With a view to emissions reduction, we are
simultaneously considering measures such as switching to
renewable electric energy at our business locations andreplacing the corporate fleet with vehicles of low
environmental impact. Regarding the calculation of Scope 3
emissions for the whole of the supply chain, our approach
will be based on continuous review of the situation.

For details of information disclosure in accordance with TCFD
recommendations, please see our website.
https://www.sanyo-trading.co.jp/uploads/TCFD_202212.pdf(in Japanese only)

Supply of products from Perstorp, a company
with ISCC PLUS certification
We supply products from Perstorp (Head office: Sweden),which has business bases in 24 countries around theworld. Perstorp is actively engaged in the supply ofenvironment-conscious products with ISCC PLUS
certification based on the ‘mass balance’ concept.
Perstorp’s environment-friendly product range isdesigned to reduce GHG emissions across the whole value
chain and to support sustainable procurement bypromoting reusable and recyclable raw materials.
The items in this product range are chemically identicalto fossil-derived products and deliver high quality with noloss of performance. The difference is in the raw materials,
which consist of reusable or recyclable items rather thanunused fossil fuels.

Since launching sales of Voxtar™ in 2010, Perstorp has
greatly expanded its environment-friendly product range toinclude polyols, plasticizers, acids, alcohols, and otherproducts. Perstorp has set out a roadmap up to 2030 andis working actively to replace raw materials and develop
more readily recyclable products, with the future aim ofmaking all products environment-friendly.
Outline of mass balance concept
Raw materials

Manufacturing

Products· Fossil fuel-derived
Product A
MixtureProduct B· Reusable materials· Recyclable materials

The mass balance concept guarantees
the content of recyclable or reusableraw material in products.

Contributing to a Circular Economy
Initiative on marine plastics
Supply to the Japanese market of “# tide,”a recycled material made with 100% OBP
Tide Ocean SA (Head Office: Switzerland) is the world’s
first enterprise to upcycle 100% of its collected
ocean-bound plastic (OBP), a cause of the marine plastics
issue. We have entered into a license agreement to supply
Tide Ocean’s high-quality recycled plastic product “# tide.”“#tide” is a high-quality plastic made exclusively withcollected and upcycled OBP. It is produced using theworld’s first technology to use exclusively OBP as raw
material, with no use of unused plastic not related tomarine waste. As it has the same high quality as non-OBP
plastic, we envisage its use in a wide range of applications
from containers and fibers to automotive parts andcomponents. It also has 79% lower CO2 emissions thanconventional plastics and is thus a product with very low
environmental impact.
The collection of OBP involves working together withlocal communities in developing countries, thus providing
employment and contributing to public funds.

Collecting OBP

Manufacturing process

SANYO TRADING Corporate Report 2022

26

Materiality Initiatives

Providing Enriching Lifestyles
Scrum Inc. acquired as subsidiary to strengthen
bio-related businessInitiatives for Society
Japanese market launch of IEE’s millimeterwave sensor to prevent children being left
behind in vehicles
The specialist sensor manufacturer IEE S.A. (Head office:Luxembourg) commands a large share of the world
market in automotive sensors. We aim to expand our
automotive sensor business by launching on the Japanesemarket sensors designed by IEE to prevent children being
left behind in passenger cars or buses.
Under Europe’s New Car Assessment Programme (Euro
NCAP)*, devices to prevent children being left in vehicles
will be added to the safety items assessed from 2023. To
prevent cases of heatstroke due to children being left
unattended in vehicles, we will focus resources on thesensors’ introduction and market expansion in Japan,
which will help save human lives.
The two sensor products developed by IEE that we willhandle, the VitaSense™ and the LiDAS™, are the world’s
first to use millimeter wave radar to spot unattended
children in vehicles. The VitaSense™ is a radar sensing

Product name

VitaSense™

system for passenger cars. As it uses millimeter wave
radar, it detects people without registering their face orbody shape. It therefore maintains complete privacy whilestill performing with an accuracy that can detect thebreathing of a newborn beneath a blanket. Compliant with
the Euro NCAP protocol, the product received its
world-first certification in 2020, from the USA’s Federal
Communications Commission (FCC).
The LiDAS,™ a radar sensor for buses, can be installedin existing vehicles and is increasingly used on schoolbuses in the USA.
We will promote the market penetration of the
VitaSense™ and LiDAS™ in Japan as pillars of ourautomotive sensor business, thus contributing to theresolution of a social issue. We plan to begin supplying the
LiDAS™ in 2023 and the VitaSense™ in 2025. Five years
later, in 2027, we aim to install 300,000 units a year of the
VitaSense™ and 2,000 a year of the LiDAS™.
* A vehicle safety test introduced by European countries

LiDAS™

• Radar sensing system for passenger cars

• Radar sensor for buses• World’s first sensor mass-produced• Can be installed in existing buses

for automotive use• Can detect a baby beneath a blanket

Dimensions• Japanese market launch in preparation*Market launch planned for FYE 9/2023

67 x 48 x 17mm (excluding connector)

75 x 45 x 19 mm (includes sensor only)

45 g

45 g

60GHz waveband

24GHz waveband

WeightWave frequency

27

Focus
Whole-epigenome analysis at cellular level
Scrum Inc. supplies products used in the analysis ofcell types, cellular conditions, and gene regulation
mechanisms. A chromium controller is a pretreatment
instrument for single-cell analysis and represents asingle-cell analysis platform for the creation of anext-generation sequencing (NGS) library. By combining
microfluidic emulsification technology with molecularbarcoding (cell barcoding), this instrument makes it
possible to perform integrated and comprehensive
analysis of various substances with physiological
functions in a way that requires minimal labor input.
This will allow scientists to uncover the diverse gene
expression patterns of individual cells. The RNA
sequence analysis in use up to now measures average

Launch of trading in phytogenic products

ImagesOverview

We acquired Scrum Inc. as a subsidiary as part of an
initiative to strengthen our bio-related business.
Scrum Inc. is a specialist trading company engaged in
the import and sale of various analytical and measuring
instruments for use in the biotechnology field and related
reagents and consumables. Scrum Inc. also provides
outsourced services including peptide synthesis andantibody manufacturing. A recognized name within the

SANYO TRADING Corporate Report 2022

In August 2018, the Sanyo Trading subsidiary YPTECH Co.,
Ltd., concluded an agency agreement with Delacon (Headoffice: Austria), and began handling phytogenic products(functional raw materials of plant origin). Delacon, a global
supplier of plant-derived livestock feed raw materials,
became a member of Cargill, the world’s leading
agribusiness group (Head office: USA), in June 2022.
Phytogenics are safe and healthy livestock feed raw
materials made with a wide range of herbal substances.
Seven types of substance extracted from the herbs—pungent
substances, saponins, bitter substances, essential oils,
flavonoids, mucilages, and tannins—are combined asadditives according to requirements. The livestock product
Fresta F for pigs increases appetite, improves digestionand supports the development of the digestive tract inpiglets. Actifor Pro for dairy cows boosts the digestion rateof the bowel and improves milk yield, physical growth, andbiological instruments industry, Scrum Inc. haswell-developed abilities in technology sales with particularstrength in the supply of highly specialized niche productsof high added value. Scrum Inc.’s business complements
the scientific instruments business of our Life Science
Business Unit, with no competing items among theirtraded products. Our collaborative relationship is expected
to bring a range of synergies through strengthened
marketing, sales channel expansion, and leveraging of ouroverseas bases and technology support subsidiaries.

values for a cell group. This meant that altered gene
expression in a small number of cells was difficult to
detect as it was obscured by the gene expression datafrom the cell majority. In future, single-cell analysis will
make it possible to detect altered gene expression
even in a small number of cells.

Pretreatment equipment
for single-cell analysis

Dedicated reagentsand consumables

feed efficiency. Biostrong Protect for poultry maintains
resistance to oxidative stress and supports recovery fromdigestive tract injury, thereby improving productivity. Enviro
QS for pig and poultry raising has envisaged benefits
including reduction of ammonia emissions.
By supplying these plant-based livestock feed additives,
the Sanyo Trading Group will promote livestock raising
focused on animal health, realize improved yield andreduced feed cost for producers, and contribute to a safe
and wholesome diet for consumers.

SANYO TRADING Corporate Report 2022

28

Materiality Initiatives

Empowering Highly Motivated andDiverse Human Resources
Promoting Health and Productivity Management

Realizing Diverse Work Styles

We have identified “investing in human resources” as a key
measure for “strengthening the corporate structure,”
which in turn is one of the basic strategies of ourlong-term management plan, VISION 2023. Accordingly,
we are focusing efforts on health and productivity
management with the objectives outlined below.

The COVID-19 pandemic has brought a major change inwork styles in terms of work hours and location, with a moveaway from the conventional idea of commuting to work everyday. We are exploring work patterns that give flexibility ofhours and location. In this way we aim to realize work styles
that allow employees to contribute to society by developing
their abilities to the full and delivering greater customer value.

· To promote a better work-life balance for employees and theirfamilies and to support employee health promotion· To strengthen the health and productivity management system inorder to avoid the risk of losing business and at the same time
contribute to improving employee productivity and businessperformance. This reflects the fact that the requirement to put inplace an occupational health and safety management system for
employees is nowadays a standard condition of agreementswith business partners.

In the year ended September 2022, we established the
Health & Smile Committee, held health webinars, launcheda health management app, and created an industrial
physician post at the Nagoya Branch in addition to theexisting post at Head Office. Additionally, we strengthened
the stress check system, created a system of individualinterview-based guidance at the Nagoya Branch, andintroduced a hot-desking system at Head Office.
Health and Productivity Management Declarationand Health Promotion System
At Sanyo Trading, we believe that the mental and physicalhealth of each employee is important. With employees ingood health both physically and mentally and strongly
motivated to generate new value, we contribute todelivering enriching lifestyles by working to source
products and ensure their stable supply. Based on thisapproach, we issued the Sanyo Trading Health andProductivity Management Declaration in December 2022.
This declaration will form the basis for our implementationof health and productivity management initiatives toward
fulfilling our Management Mission as summed up in the

Sanyo Trading Health and Productivity Management
Declaration• Enhancing the Workplace Environment

Sanyo Trading will put in place a safe, secure, andhealthy workplace environment where employees feelenergized in their work.
• Promoting Health AwarenessSanyo Trading will support a wide range of healthinitiatives to raise employee awareness of physical andmental health.
• Responsibility Toward the Future

Sanyo Trading will work to maintain and improve employee
health as a way of raising organizational productivity andthereby achieving sustainable business growth.

Slogan “Challenging ourselves for the BEST solution.”
Sanyo Trading regards health and productivity
management as part of ESG’s social (S) dimension, which
encompasses human resource management. To promoterelevant initiatives, we additionally established the Healthand Productivity Management Promotion Committee in
December 2022 as a subcommittee of the Sustainability
Committee. The committee is an organ separate from thepre-existing Health and Safety Committee.
Board of Directors

President & CEO

Sustainability
Committee

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

Diversity Initiatives
We are enhancing our systems so that employees can be
confident of enjoying a long working life regardless of theirgender or age. Currently, we are rolling out measures
focused on female empowerment. These include offering
up to two years’ childcare leave and also reduced working
hours after the return to work so that women do not haveto leave the company to take a career break. To create anenvironment and put in place systems that are friendly to

29

SANYO TRADING Corporate Report 2022

female empowerment, we operate the so-called
Nadeshiko-Kagayaki Committee.

Hot-desking system, teleworking, andstaggered working hours

and staggered working hours. We are also exploring
diverse work styles that support employee performanceand are building relevant expertise. To strengthencommunication between employees, which is weakened
by teleworking, and increase opportunities for social
interaction, which canlead to innovation, we
have introduced a hot
desking system to remove
interdepartmental barriers.

With no foreseeable end to COVID-19 just yet, we have
moved to protect employee safety through teleworking

Promoting Human Resource Development
Sanyo Trading has set “investing in human resources” as
one of the basic strategies of its long-term management
plan and aims to nurture globally successful professionals.
In October 2020, we established a Human Resources
Department (now Human Resources & General Affairs
Department) under the direct control of the president. We
will further strengthen our commitment to investing inhuman resources, with measures such as an update of
the personnel system that included a review of employee
evaluation criteria and a significant expansion of the
training system. To move toward more diverse work styles,
we have reviewed and enhanced our systems, including
by revising the personnel system, promoting teleworking,and introducing staggered working hours.

External Training and e-Learning
We take part in a variety of external training programs fordeveloping employees and improving their business skills.
Furthermore, we offer more than 100 e-learning programs
that enable employees to learn the skills that they want.
We also have an incentive system for rewarding
employees who acquire certain certifications.
Rank-Based Training
Continuing from the second year of employment, we
provide support for ongoing growth with a view tolong-term career development. Our rank-based training
enables them to learn the skills and mindset required
relative to their respective length of service and role,
including leadership and management skills.

Overseas Training System
Young managerial track employees are able to apply via an
in-house recruitment system for year-long training programs
at our offices in China, Thailand, Vietnam and othercountries. In 2022, one employee was posted to China(Shanghai). While working at the local office, employees areprovided with comprehensive support from the Company sothat they can get the most from this one-year experience,such as through enrollment at a language school.
Short-Term Training in New York
Young managerial track employees are eligible to apply fora one-month training program in New York. Those
selected are given on-location language training, thereby
helping them to acquire the skills for global success.

New Employee Training
Internal training for new employees includes an overview
of the business dealings of each business unit and basic
knowledge training conducted by the administration
divisions. External training is also provided. To deepen
employees’ understanding of import and export
operations, they also participate in training at the frontlineof international trade such as at customs and warehousefacilities. Managerial track employees, meanwhile,
undergo a training period of approximately two months at
the administration divisions to learn business basics before
their assignment to a specific department.

Members of the Nadeshiko-Kagayaki Committee, an in-house projectfor female advancement

SANYO TRADING Corporate Report 2022

30

Materiality Initiatives

Building a Resilient Management Structure(Corporate Governance)

Basic Approach to Corporate GovernanceSanyo Trading has defined its Management Mission as“With an unwavering and enterprising spirit, and a free andopen corporate culture, we will supply the best solutions ina flexible and timely fashion, working to realize a processof ‘co-creation’ by which we contribute both to thesustainable development of the international community
and the happiness of our employees.” We believe that
fulfilling this Management Mission will meet the

Appointment and Dismissal of Directors
expectations of all our stakeholders.
To that end, our Credo states: “We comply with laws
and regulations, and act with integrity,” “We makedecisions and act on them quickly and accurately,” and“We understand the trends of the times and anticipatechange.” By following these aspects of this Credo, we aim
to reinforce our corporate governance system.

Corporate Governance Structure
General Meeting of Shareholders
Appointment,
dismissal

Reporting

Nomination andCompensation Committee

Deliberation,offering
opinion

Reporting
Auditing,supervision

Board of Directors

Appointment,
dismissal

Audit and Supervisory
Committee

Appointment,
dismissal

Accounting Auditor

Selection,
dismissal,
supervision
Appointment,
dismissal,
supervision

Auditing

Compliance Committee
President & CEO
Executive Officers

Sustainability Committee
Internal Audit Section

Cooperation

Auditing

Internal directors

Supervision

Outside directors

Name

Accounting
audit

Business Divisions andAdministration Divisions

Executive officers

Masanobu Shintani

MaleToshiaki Mizusawa

Male

Hiroshi Shirai

Male

Kenichi ShindoMaleMitsuyasu Hirasawa

Male

Hirotaka Sugihara Outside

Male

OutsideMale

Mitsuo Ogawa

31

Overview

No. ofmeetings

Outside director
attendance rate

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

15

96%

Audit and Supervisory
Committee

Audits and supervises the legal compliance and adequacy of the execution of duties of
directors who are not Audit and Supervisory Committee members.

15

Nomination andCompensation
Committee

Works to enhance the independence, objectivity, and accountability of the functions of theBoard of Directors with regard to the appointment and dismissal of the president & CEO anddirectors with special titles, the nomination of director candidates, and the remuneration of
directors (excluding those who are Audit and Supervisory Committee members).

3

Committee of
Executive Officers

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

12

SANYO TRADING Corporate Report 2022

ESG/
International
Sustainability experienceLegalaffairs/Riskmanagement

Finance/
Accounting

Board ofDirectors

Audit andSupervisory
Committee

Committee Nomination andof Executive Compensation
Committee
Officers

Yasuhiko Nishimura

Male

Asako Hasegawa Outside

FemaleKuniaki Kobayashi Outside

Male

OutsideMale* Substitute Audit and Supervisory Committee members

Major Governance Bodies

Board of Directors

Corporate
management

Directors Who Are Audit and Supervisory Committee Members

Kiitsu Sugita*

Name

GenderDirectors

Cooperation

Risk Management
Committee

In the event that an executive officer or a director has
committed a potentially dishonest or improper act, or isdeemed not to able to perform the responsibilities of his or
her role, an investigation is conducted as necessary.
Following deliberation by the Nomination and Compensation
Committee, the majority of whom are independent outside
directors, the Board of Directors makes a decision on thedismissal of the executive officer or director, or other response.
For remuneration of directors who are not Audit andSupervisory Committee members and directors who are
Audit and Supervisory Committee members, please refer toCorporate Officer Remuneration, Etc. on the following page.

Skills Matrix

Cooperation

Consultation
Submission
and Reports

When appointing an executive officer or a director, thePresident & CEO creates an appointment plan that takes
into consideration the composition (in terms of diversity, etc.)of the Board of Directors, qualities required of executive
officers and directors (e.g., management ability, experienceand expert knowledge) and other factors. The plan isdeliberated on by the Nomination and Compensation
Committee, the majority of whom are independent outside
directors. Following the committee’s deliberations, the Boardof Directors makes a decision on the proposed appointmentof an executive officer or director in accordance with theappointment plan.

Reasons for Appointment of Outside Directors
Name

Reason for appointment

Hirotaka Sugihara

Mr. Sugihara possesses a wealth of experience and knowledge gained through many years of working at a trading company
and also has extensive experience of corporate management and organizational operation as a corporate manager.

Mitsuo Ogawa

Mr. Ogawa possesses strong insight gained through many years of experience in human resource and organizational
consulting and also has extensive experience of corporate management and organizational operation as a corporate manager.

100%

Asako Hasegawa

Although Ms. Hasegawa does not have previous experience of direct involvement in corporate management, she has athorough knowledge of financial accounting and tax affairs as a certified public accountant and has the ability to audit andsupervise the Company’s management based on the resulting insight and experience.

—

Kuniaki Kobayashi

Although Mr. Kobayashi does not have previous experience of direct involvement in corporate management other than as
an outside director, he has a thorough knowledge of corporate legal affairs as an attorney and has the ability to audit andsupervise the Company’s management based on the resulting insight and experience.

Kiitsu Sugita

Although Mr. Sugita does not have previous experience of direct involvement in corporate management, he has a thoroughknowledge of tax affairs as a certified public tax accountant and has the ability to audit and supervise the Company’s
management based on the resulting insight and experience.

97%

SANYO TRADING Corporate Report 2022

32

Materiality Initiatives

Building a Resilient Management Structure(Corporate Governance)
Remuneration of directors (excluding Audit andSupervisory Committee members)

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

To enhance objectivity and transparency when
determining remuneration for directors, the Nomination
and Compensation Committee, the majority of whom areoutside directors, discusses approaches and the policy for
determining remuneration of corporate officers, as well as
remuneration levels, after which the Board of Directors
determines remuneration based on the advice andsuggestions of the committee.

Composition of Corporate Officer Remuneration
President
Other directors

Fixed remuneration (monetary remuneration)
55%(excluding Audit andSupervisory Committee
members)

Fixed remuneration (monetary remuneration)
65%

Outside directors

Fixed remuneration (monetary remuneration)
100%

Non-monetary
remuneration
10%

Performance-linked remuneration
35%
Performance-linked remuneration25%

Non-monetary
remuneration
10%

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

Performance-linked
remuneration, etc.

Non-monetary
remuneration, etc.

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

196,547

113,850

67,55015,147

5

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

14,40014,400——1

Outside corporate officers

22,95022,950——5

Policy for determining remuneration, etc. foreach director (excluding Audit and Supervisory
Committee members)
The policy for determining remuneration, etc. for eachdirector (excluding Audit and Supervisory Committee
members) is decided on at the Board of Directors meeting.
Fixed remuneration (monetary remuneration)
Basic remuneration for directors (excluding Audit andSupervisory Committee members) consists of monthly fixed
remuneration, which is the total of the salary as a company
representative, supervisor and/or executive officer. The sameamount is paid for each equivalent position. Basic
remuneration is determined taking into account remunerationlevels at other companies and employee salary levels,among other factors, while also comprehensively consideringchanges in the economic and social environment, etc.
Performance-linked remuneration
Performance-linked remuneration consists of monetary
remuneration that reflects the business performance of theCompany, in order to incentivize directors to improve

33

SANYO TRADING Corporate Report 2022

Annual total of no more than 250 million yen (to include an annual
total of no more than 20 million yen for outside directors)
Note: As resolved at the 73rd Ordinary General Meeting of Shareholders,
held on December 19, 2019.
Stock compensation-type stock options
Annual total of no more than 20 million yen
Note: As resolved at the 75th General Meeting of Shareholders,
held on December 22, 2021.
Note: The number of eligible directors (excluding Audit and Supervisory
Committee members) at the time of the respective resolutions was six(including one outside director) at the 75th meeting and five at the 73rd.

Reasoning why the Board of Directors deems
the content of remuneration, etc. for each individual
to be in line with the policy
Given that the Nomination and Compensation Committee

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

ComplianceTotal remuneration, etc.
(Thousands of yen)

Position

Total amount of monetary remuneration (fixed remuneration andperformance-linked remuneration) for directors (excluding Audit andSupervisory Committee members)

reports its conclusions after checking consistency, etc.,
between the content of remuneration, etc., for eachdirector and the policy for determining remuneration, andthat the Board of Directors basically respects thecommittee’s report, the Board of Directors deems thecontent of remuneration, etc., for individual directors to bein line with the policy.

Eligible corporate
officers

business performance each fiscal year. Consolidated ordinary
income is used as the index of business performance,
because it is used as a performance target when deciding
internal budgets, and is also considered to be the easiest
index for understanding the management status of theGroup. Performance-linked remuneration is paid as a bonus
at the end of each fiscal year and is calculated based on
the consolidated ordinary income that fiscal year.
Non-monetary remuneration
Non-monetary remuneration consists of a stockcompensation-type stock option, which is issued toregistered directors (excluding outside directors and Audit
and Supervisory Committee members) every February withcomprehensive consideration of the position, degree ofcontribution and business performance (consolidated
ordinary income) that fiscal year. The details are as follows:
stock acquisition rights the exercise of which entails theissue of common shares at the exercise price per share of
1 yen on the condition that directors can only exercise
these rights after retiring from their position.

The Company has formulated the Sanyo Trading Group
Code of Conduct Manual, which specifies how officers
and employees of the Company and its subsidiaries
should act to ensure their actions are in accordance with
the Management Mission, and in compliance with laws
and regulations as well as the Articles of Incorporation. To
ensure the effectiveness of the manual, the president
appoints a director in charge of compliance and theCompany has additionally established a Compliance
Committee, thus putting in place a system to coordinate
legal compliance initiatives Group-wide. The status ofactivities is reported regularly to the Board of Directors.
Subsidiaries make periodic reports to the Board of

Directors and the relevant supervising division, and asystem is in place by which they are able to report theirstatus regularly through participation in meetings of theCommittee of Executive Officers.
The Internal Audit Section audits the business activitiesof the Company and its subsidiaries and reports its
findings to the Board of Directors. The Company has
established and continues to operate whistleblower
hotlines, whereby acts that violate or risk violating laws
and regulations or social norms can be reported internallyto the Compliance Committee and externally to a third
party (attorney). Internal regulations have been establishedto protect reporters from receiving unfair treatment.

Risk Management
The Company takes all reasonable steps to identify a variety
of risks that arise in business execution by applying
consistent standards, and implements comprehensive risk
management in order to ensure sound management andmaximize shareholder value. Specifically, in accordance with
our internal regulations, the Company ensures the clarity of
its risk management system by specifying the divisions
responsible for different types of risks and managing risks
exhaustively and comprehensively. The president appoints a
director in charge of risk management and the Risk
Management Committee has been established so as tomonitor various risks intrinsic to the Company’s operations
as well as risks that the Company should prevent frommanifesting to ensure business continuity, and promptly
respond to changes in the risk landscape. The committee
regularly reports to the Board of Directors with risk
management overviews, including countermeasures forwhen a risk that should be avoided manifests. For
subsidiaries, a system to preempt losses has been put inplace under the Risk Management Regulations based oninterviews with the representative directors of thesubsidiaries and other relevant personnel as required.

SANYO TRADING Corporate Report 2022

34

Dialogue with Outside Directors

Helping enhance the Company’s long-term corporate value
by supporting its unique unwavering and enterprising spirit

Sanyo Trading is strengthening its management foundation to establish sustainable growth. Our outside directors provide
critical objectivity in the monitoring and supervision of the Company’s management. We asked Outside Directors Hirotaka
Sugihara and Asako Hasegawa, who is an Audit & Supervisory Committee Member, to share their perspectives on the
Company’s current condition and challenges and its sustainability initiatives as well as what they expect from the Company
in the future.

Sanyo Trading Management
As an Outside Director, how would you describe
Sanyo Trading?
Sugihara: My first impression was that Sanyo Trading has
a very clear management mission. Rather than pursuingbusiness aimed at short-term profits, the Company says
“we will supply the best solutions in a flexible and timely
fashion” and use “co-creation to contribute to thesustainable development of the international community
and the happiness of our employees.” This statement may
seem rather basic at first, but I think it actually requires a
great deal of courage as a company.
The management mission declares right up front that it
is based on sustainability, making it abundantly clear that
it is a company priority. Sanyo Trading is directly working
to solve social issues like reducing society’s impact on theenvironment by “Challenging ourselves for the BEST
solutions” with the aims of creating a sustainable global
society and generating company growth into the longterm. Management seeks to improve its performance inthis area every year. I believe this is essential to corporate
undertakings and that this attitude is what sets Sanyo
Trading apart.
Hasegawa: President Shintani also sends out clear
messages from time to time to remind employees about
our mission so everyone is working with the same
objective. In the dramatically changing businessenvironment and the need to pursue growth in completely
new directions, I believe the leadership of the president
and a positive corporate culture that is free and open are

Hirotaka Sugihara
Outside Director
Outside Director since December 2021. Mr. Sugihara’s
career at Itochu Corporation including overseas businessdevelopment, plant operations, investment and M&A, as
well as corporate and organizational management.

35

SANYO TRADING Corporate Report 2022

behind the Company’s good business performance.
At one of the committee meetings that President Shintani
attended, I said that understanding the concept of
unconscious bias does not mean you are able to notice
your preconceptions and prejudices. It takes time for thatawareness to emerge. What if we were to provide sometraining to help employees become more aware? President
Shintani said, let’s do it. And two months later we started
offering training to all employees. I think his ability to accept
and implement ideas like that creates motivated employees.
Sugihara: The Board of Directors also communicates very
effectively, and the meeting discussions are both active
and non-formal. Also, the Company’s managers andemployees diligently respond to questions and input fromthe outside directors and provide reports to us in a timely
manner. The Company is also good at briefing us about
important topics prior to meetings so we are able to fully
understand the issues.
What are your views on the long-term growth strategy?
Sugihara: When I reviewed Sanyo Trading’s financial
affairs after becoming an outside director, I was surprised
at how large the gross margin was. I even checked it
several times because I thought it must be a mistake. I
could see that the Company’s business model was built
on outstanding expertise, highly knowledgeable employees,
and committed effort. I’m convinced the Company is fully
capable of generating steady earnings into the future. At

the same time, I think a new business model will beneeded for the Company to make another leap forward in
the medium and long term.
Sanyo Trading has actually been strategically forming a
new business model for several years. During that time, it
has completed M&A of over 10 companies, including
functional feed additives importer and seller YPTECH andbiotech product importer and seller Scrum Inc. Many othernew strategic projects are also underway within the
Company. A presentation I attended last year described
the strategies as following two pairs of key words—
investment and M&A, and new commercial rights andproducts. The Company is pursuing numerous newcommercial rights and products that could be real gamechangers. I believe these are creating the framework forthe leap forward that the Company needs.
Hasegawa: One of the objectives of VISION 2023 is toaccelerate global expansion and boost overseas businessgrowth by 10% annually. This strategy helped boost bothsales and income in the fiscal year ended September
2022, which I believe indicates that the Company has
tremendous global potential. The overseas businesses arealso likely to face increasing competition, so it will benecessary to monitor them more closely. As a member ofthe Audit and Supervisory Committee, I often emphasize
at the Board of Directors meetings about the importanceof governance and how critical maintaining strict
governance is for the future expansion of the business. To
build corporate value, I think it is also important tosometimes push employees to achieve more.

Asako Hasegawa
Outside Director & Audit andSupervisory Committee Member
Outside Director since December 2017. Ms. Hasegawa’s
experience includes working in the chemical business of Kanematsu
Corporation and auditing trading companies and conducting
Board of Audit examinations as a certified public accountant.

SANYO TRADING Corporate Report 2022

36

Dialogue with Outside Directors

It’s important that Sanyo Trading
makes direct progress toward
the right goals and continues
improving every year.
Hirotaka Sugihara

Sustainability initiatives
What do you think of Sanyo Trading’s initiatives toestablish sustainable growth?
Hasegawa: I consider efforts to address social issues tobe a way to reduce risk, but I also see them opportunities
for business growth. One of the social issues the Company
is working on is the problem of plastic waste in the ocean.
In September 2022, Sanyo Trading entered into alicensing agreement with the Swiss company Tide Ocean,
the world’s first company that is upcycling ocean-boundplastic (OBP). The idea of collecting and reusing plastic
that has not been properly disposed is very interesting,and I believe plastic recycling has the potential to createlots of local jobs.
Sugihara: Sanyo Trading also has a very capable
workforce for realizing the business growth. That’s
because the Company’s clear vision for developing humanresources produces a free and open-minded corporate
culture and fosters dedicated and motivated employees.
The management mission places the goal of “thehappiness of our employees” at the same level as
developing a global society. Some of the ways theCompany fosters its employees are by encouraging themto think “Rather than just doing whatever I’m told to do, I
can put thought into my work and be creative with it,” or “I
can do my work with full confidence because I know I will
be evaluated fairly,” “It doesn’t matter what my position isin the Company, I’m allowed to say what I think,” “I feel37

SANYO TRADING Corporate Report 2022

motivated and happy to do my work because I can feel thatI’m growing as a person.” All of these will lead to growth for
the Company and increasing shareholder returns in themedium and long term. I believe the Company moving
directly toward attaining its clear objectives.
Sanyo Trading also has numerous committees,seminars, projects, and study groups where employees
focus on finding real solutions to issues facing theCompany. Thinking and talking about issues is a reallearning experience, and it’s motivating to see one’s ideas
being put into practice. I think training and opportunities
like that both play major roles in the development of
human resources. That is another part of the free andopen corporate culture—communication that is not just
top-down but also two directional.
Hasegawa: A trading company’s most important assets
are its people. I want Sanyo Trading to have an organizationthat encourages all employees to be highly motivated intheir work. To do that, I think a system will need to becreated that allows motivated employees to work in theway that allows them to be the most productive. They say
the more diversity an organization has, the better able it is
to respond to risk and to generate innovation. To enhancediversity, the Company created a special committee inJanuary 2022 to promote the active participation of
women in the workforce. I’ve attended several of themeetings. The committee chair is a man, but all of theother members are women from various positions in the

Company and representing many generations. I lookforward to the Company taking more steps to enhancediversity in other ways as well.
Sugihara: Sanyo Trading also has diversity in its workforce
from over half of its employees being mid-career hires. The
integration with the new college graduates creates a poolof people with wide-ranging knowledge. It’s also rare for a
trading company to have roughly half of its employees
come from science backgrounds, which is why theCompany has such a strong technical foundation in its
sales activities. As the population of Japan declines, it will
be increasingly important to hire and develop talented
human resources of both genders and various nationalities.
Hasegawa: I have been the only female director since I
was appointed as an outside director. I hope the day will
come soon when we have a female director that came up
through the Company.

Looking to the future
What are your objectives as an outside director of
Sanyo Trading?
Sugihara: I believe the role of an outside director is toprovide objective assessments and help the Company
correct its course when something doesn’t seem rightfrom my perspective from outside the Company. I would
also like to provide specific recommendations tomanagement, particularly regarding new investments andM&A. I will do everything I can to apply my experience andknowledge to assist in the development of the Company,
contribute to the happiness of employees and, ultimately,
to benefit the Company’s shareholders.
Hasegawa: I believe my role is to fulfill the mandate of allshareholders and stakeholders to help guide the Company
toward further growth and to continue enhancing its
corporate value by using my status as an outside director
to support and oversee management in its creation andexecution of corporate strategies. As an outside director
on Audit and Supervisory Committee, I feel a great
responsibility to voice my opinions at the Board of
Directors meetings and participate as much as I can in
the decision-making process.
I want to provide professional recommendations frommy career in auditing and accounting as a certified public
accountant and from my experience working at a trading
company. As the sole female director, I also want toprovide recommendations and express my opinions froma woman’s perspective.
My aim is to use my position as outside director to help
the Sanyo Trading Group achieve its potential for further
growth by helping management respond flexibly to thechanging business environment and approach issues
using multifaceted thinking and perspectives.

I expect the Group to continue
developing as a Group by
flexibly responding to changes
in the business environment andincorporating various ideas
and perspectives.

Asako Hasegawa

SANYO TRADING Corporate Report 2022

38

Corporate Officers (As of December 22, 2022)

Toshiaki Mizusawa

Masanobu Shintani

Director & Executive Officer
In charge of
Administration Divisions

President & CEO

Number of shares held 40,000
Attendance at the Board of Directors meetings 15/15 (100%)

Number of shares held 4,900
Attendance at the Board of Directors meetings 15/15 (100%)

April
October
OctoberJanuary
October

April

1982
2008
2010
2012
2012

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

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

Hiroshi Shirai

Kenichi Shindo

Director & Executive Officer
In charge of
Administration Divisions

Director & Executive Officer
In charge ofBusiness Divisions

Number of shares held 13,600
Attendance at the Board of Directors meetings 15/15 (100%)

Number of shares held 27,400
Attendance at the Board of Directors meetings 15/15 (100%)

April
October
April

April
October
April
October

1982 Joined the Company
2006 President of Sanyo Corporation of America
2009 General Manager of Tokyo Chemical Business Unit 2 of
the Company
October 2013 Executive Officer, General Manager of Corporate Planning
Department
October 2014 Executive Officer, General Manager of General Affairs Department
October 2015 Executive Officer supervising Administration Divisions
December 2017 Director & Executive Officer in charge of Administration Divisions
October 2022 Director & Executive Officer in charge of Administration Divisions,
General Manager of Domestic Subsidiary Coordination Department
December 2022 Director & Executive Officer in charge of Administration Divisions(present post)

1985
2006
2009
2013

December 2013
October 2016
December 2018
December 2019
June

2020

October

2021

Joined the Company
General Manager of Machinery & Environmental Business Unit 1
General Manager of Machinery & Materials Business Unit
Executive Officer, General Manager of Machinery & Materials
Business Unit
Executive Officer of the Company President of Sanyo Corporationof America
Executive Officer, General Manager of Chemical Business Unit
Representative Director and President of Sanyo Machinery Co., Ltd.
Director & Executive Officer, In charge of Business Divisions,
General Manager of Machinery & Environmental Business Unit
Director & Executive Officer, In charge of Business Divisions,
General Manager of Machinery & Environmental Business Unit,
General Manager of Scientific Instruments Department
Director & Executive Officer, In charge of Business Divisions(present post)

Mitsuyasu Hirasawa

39

Outside Director(Independent Officer)

Number of shares held 0
Attendance at the Board of Directors meetings 11/11 (100%)(Since appointment on December 22, 2021)

April
October
October
October
October

April
May

SANYO TRADING Corporate Report 2022

Director

Number of shares held 0
Attendance at the Board of Directors meetings —(Newly appointed on December 22, 2022)

Number of shares held 29,200
Attendance at the Board of Directors meetings 15/15 (100%)
Attendance at Audit and Supervisory Committee meetings 15/15 (100%)

April

April
1980 Joined The Bank of Tokyo, Ltd. (currently MUFG Bank, Ltd.)
November 2003 General Manager of Marunouchi Branch, Corporate Sales II,
The Bank of Tokyo, Ltd.
December 2004 General Manager of Oji Branch, The Bank of Tokyo, Ltd.
March
2009 Joined the Company
General Manager of Finance Department
December 2019 Director (Audit and Supervisory Committee Member) (present post)

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

Asako Hasegawa

Kuniaki Kobayashi

Audit and Supervisory
Committee Member

Audit and Supervisory
Committee Member

Outside Director(Independent Officer)

Outside Director(Independent Officer)

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

Number of shares held 0
Attendance at the Board of Directors meetings 10/11
Attendance at Audit and Supervisory Committee meetings 9/10
(Since appointment on December 22, 2021)

April
1988
October 2000
December 2004
December 2017

April
2000 Joined YUASA and HARA
September 2013 Joined Yamada, Goya & Suzuki (present post)June
2014 Outside Director (Audit and Supervisory Committee Member) of
Kanematsu Sustech Corporation (present post)
December 2021 Director (Audit and Supervisory Committee Member) of theCompany (present post)

Joined Kanematsu Corporation
Joined Asahi Audit Corporation (currently KPMG AZSA LLC)
Hasegawa CPA Office, Representative (present post)
Director (Audit and Supervisory Committee Member) of
the Company (present post)

Hirotaka Sugihara

Number of shares held 0
Attendance at the Board of Directors meetings —(Newly appointed on December 22, 2022)
Joined the Company
General Manager of Industrial Products No. 2 Business Unit
General Manager of Industrial Products No. 1 Business Unit
General Manager of Industrial Products Business Unit
Executive Officer, General Manager of Industrial Products
Business Unit
October 2020 Executive Officer, General Manager supervising Industrial Products
Business Unit, General Manager of New Business Development
Department
December 2020 Senior Executive Officer, General Manager supervising Industrial
Products Business Unit, General Manager of New Business
Development Department
December 2022 Director & Executive Officer, General Manager of New Business
Development Department, In charge of Business Divisions(present post)

Full-Time Audit and Supervisory
Committee Member

Outside Director(Independent Officer)

Executive officers

Director & Executive Officer
General Manager of
New Business Development
Department
In charge ofBusiness Divisions

1989
2012
2014
2015
2016

Yasuhiko Nishimura

Mitsuo Ogawa

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

Masanobu Shintani

Toshiaki Mizusawa

Hiroshi Shirai

Kenichi Shindo

President & CEO*

Executive Officer*
In charge of
Administration Divisions

Executive Officer*
In charge of
Administration Divisions

Executive Officer*
In charge ofBusiness Divisions

Mitsuyasu Hirasawa

Yasushi Komiya

Ryuichi Otani

Koji Taguchi

Executive Officer*
General Manager of
New Business Development
Department, in charge ofBusiness Divisions

Executive Officer
General Manager of
Rubber Business Unit

Executive Officer
Representative Director & CFO of
Cosmo Computing System, Inc.

Executive Officer
General Manager ofLife Science Business Unit

(Note) Executive officers marked with an asterisk (*) also serve as directors.

SANYO TRADING Corporate Report 2022

40

Financial and Non-Financial Highlights

Corporate Data/Stock Information (As of September 30, 2022)

Consolidated Management Indicators
Fiscal years ended September 30

Fiscal year ended
September 2018

Fiscal year ended
September 2019

Fiscal year ended
September 2020

Fiscal year ended
September 2021

Fiscal year ended
September 2022

Operating results (Millions of yen)
Net sales

78,45083,23076,08789,788111,250

Gross income

13,41014,883

14,206

15,51017,144

Operating income

5,263

5,871

4,791

5,506

5,319

Ordinary income

5,575

6,075

5,271

6,190

6,299

Income attributable to owners of parent

3,635

4,018

3,013

4,256

4,296

Financial indicators (%)
Ordinary income to net sales ratio

7.1

7.3

6.9

6.9

5.7

ROE

14.5

14.5

10.1

13.1

11.8

ROA

13.8

14.2

11.6

12.6

11.1

Shareholders’ equity ratio

63.5

66.2

64.9

67.5

61.7

Earnings per share

126.99140.36105.22148.52149.67

Net assets per share

922.67

1,011.31

1,069.41

1,195.18

1,349.41

Per share (Yen)Annual dividends per share

32.0

37.0

37.5

39.0

40.0

Financial position (Millions of yen)

Corporate Overview

Stock Status

Company NameSanyo Trading Co., Ltd.

Stock Listing

Prime Market of theTokyo Stock Exchange

EstablishedMay 28, 1947

Securities Code

3176

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

Shareholder
Registry
Administrator

Tokyo Securities
Transfer Agent Co., Ltd.

Total Number ofAuthorized Shares

40,000,000

Total Number of
Outstanding Shares

29,007,708

Total Number ofStockholders

6,912

Capital¥1,006,587,450

Employees

536 (Consolidated)

Number of
Shareholding
shares held
ratio (%)*
(Thousand shares)

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

2,528

8.80

Custody Bank of Japan, Ltd. (Trust Account)

2,358

8.21

Toagosei Co., Ltd.

1,497

5.21

MUFG Bank, Ltd.

1,137

3.96

Sumitomo Mitsui Banking Corporation

1,137

3.96

Total assets

41,60643,731

47,23050,83462,859Sumitomo Mitsui Trust Bank, Limited

1,136

3.95

Non-current assets

7,694

7,355

7,738

8,300

7,726

BOT Lease Co., Ltd.

Interest-bearing debt

1,929

1,325

4,543

2,443

6,118

1,128

3.93

Net assets

26,75629,34331,03834,725

39,212

Susumu Tamaki

1,095

3.81

Meiji Yasuda Life Insurance Company

675

2.35

Mitsui Sumitomo Insurance Co., Ltd.

530

1.85

13,225

46.04

Cash flows (Millions of yen)
Cash flows from operating activities

1,583

5,088

6,186

2,253

(3,395)

Cash flows from investing activities(408)(1,057)(2,189)(1,009)(1,809)Cash flows from financing activities(1,297)(1,957)

1,834(3,301)

1,864

Cash and cash equivalents, end of year

2,468

4,548

10,418

8,663

5,718

Total

Breakdown of Stocks by Stockholder

Total number ofoutstanding shares

29,007,708

35.6%
Individuals, etc.
39.9%
Other corporations
15.5%
Foreign corporations, etc.
6.9%
Financial instruments
1.1%
Financial institutions

business operators* Calculation of shareholding ratio does not include 284,120 treasury shares.

1.0%

Treasury shares

Note: Per share indicators are calculated taking into consideration the effect of the 2-for-1 stock split conducted on February 1, 2020.

Stock PriceNon-financial indicators
Fiscal year ended
September 2018

Employees (consolidated)

349

Fiscal year ended
September 2019368

Fiscal year ended
September 2020

413

Fiscal year ended
September 2021

442

Fiscal year ended
September 2022

536

211

224

234

241

251

67 : 33

67 : 33

65 : 35

65 : 35

65 : 35

Childcare leave utilization rate(non-consolidated)*1 (%)

100

100

100

100

100

Rate of return to work after childcare
leave (non-consolidated)*2 (%)

100

100

100

75

100

Retention rate of new graduate
employees (non-consolidated)*3 (%)

85

96

100

100

100

Turnover rate (non-consolidated)*4 (%)

2.4

4.0

3.4

7.1

5.2

Employees (non-consolidated)
Male/female ratio (consolidated) (%)*1 Childcare leave utilization rate = the number of employees who had given birth and entered childcare leave as of the date of the survey (including those who
had applied for childcare leave) as a percentage of all employees who gave birth during the fiscal year prior to the survey year (including male employees
whose spouse gave birth during the period)*2 Rate of return to work after childcare leave = the number of employees who returned after childcare leave as a percentage of those who had planned to return*3 Retention rate of new graduate employees = percentage of base year new graduate recruits remaining in employment after three years*4 Turnover rate = number of employees leaving employment in the fiscal year as a percentage of the total number of permanent employees on the first day of
the fiscal year

41

SANYO TRADING Corporate Report 2022

Stock price

Trading volume
Trading volume (Shares)

Stock price (Yen)

2,000

4,000,000

1,000

2,000,000

00

9 10 11 12 1 2
2019
2020

3

4

5

6

7

8

9 10 11 12 1 2
2021

3

4

5

6

7

8

9 10 11 12 1 2
2022

3

4

5

6

7

8

9 (Month)

Note: Effective February 1, 2020, a two-for-one stock split of common shares was implemented. Stock price and trading volume figures have been adjusted
retroactively to take account of the stock split.

SANYO TRADING Corporate Report 2022

42