CSR REPORT2023

We are dedicated to providing products of the highest value
to people by implementing innovative solutions.
CSR Basic Policy

S D G sYGK Group will make people's lives more comfortable, help enrich
our society and environment, and work to realize a sustainable
society by constantly striving to manufacture useful productsthat bring people happiness and continuously providing newvalue to society.
Aiming for a Sustainable Society -YGK's Goals
Business Activities

Corporate Profile (As of March 31, 2023)
Corporate name
YUKI GOSEI KOGYO CO., LTD.
Date of establishment
November 4, 1947
Capital3,471 million yen
Location and contact details of head office

Safety and Health/Environmental Preservation/
Quality Assurance Activities

10-4, Nihonbashi-Ningyocho 3-chome, Chuo-ku,
Tokyo 103-0013
TEL : +81-3-3664-3980
FAX : +81-3-3664-3998
Business description

Amino Acids
Enriching Lifestyles Our products in the field of nutrition and umami enrich lifestyles

Production and sale of organic synthetic chemicals,
general chemicals, pharmaceuticals, food additives,
industrial chemicals, etc.
Number of employees
295Specialty Chemicals
Improving the Future Our products support cutting-edge technology to create abetter future

I N D E X
Corporate Philosophy ………………… 2
CSR Basic Policy ………………………… 2
SDGs ………………………………………… 2
Corporate Profile ……………………… 3
President's Message …………………… 4
Overview of YUKI GOSEI KOGYO CO.,LTD. (YGK)YGK's history …………………………………………… 5
Overview of each product category ……………… 6
Major YGK products that contribute to SDGs …… 6
Financial position ……………………………………… 7
Operating results ……………………………………… 7
Intellectual property …………………………………… 7

Corporate Management

Corporate Governance………………………………… 8
Medium-term Management Plan and Basic Policy … 10
Key Measures ………………………………………… 10
Quality Culture ……………………………………… 10
Numerical Targets …………………………………… 10
Dialogue with Shareholders and Investors …… 10
Risk Management …………………………………… 11
Compliance …………………………………………… 11
	Policy on Human Resource Development andImprovement of Internal Work Environment … 11
Engagement ………………………………………… 11

Environmental Initiatives

Basic Policy …………………………………………… 12
Reduction of CO2 Emissions ……………………… 12
Prevention of Water Pollution …………………… 12
Preventing Air Pollution …………………………… 13
Reducing Waste Disposal and Conducting Recycling … 14
Material Flow ………………………………………… 14
Environmental Management Systems ………… 14

Safety and Health Initiatives
Pharmaceuticals
Protecting Lives We offer products that meeting international-level high-standard
requirements for quality to protect people's lives

Safety and Disaster Prevention Basic Policy …… 15
Factory reform activities (safety initiatives) …… 15
Safety and Health …………………………………… 16
EHS Initiatives ………………………………………… 16
Quality Policy ………………………………………… 17
New Product Safety Inspections ………………… 17
Logistics Safety ……………………………………… 17
Logistics Accident Prevention …………………… 17
Basic Principles of Procurement ………………… 17

Engagement with Local Communities

Food Loss Initiatives ………………………………… 18
Donations …………………………………………… 18
Sponsorship ………………………………………… 18
Preservation of Regional Natural Environments … 18

2 | CSR REPORT 2023

CSR REPORT 2023 | 3

01Company Profile

Overview of YUKI GOSEI KOGYO CO., LTD. (YGK)YGK's history

President's Message

FYE 3/2023 Net sales 12,839 million yen

Since our founding, we have been working under our corporate philosophy, "We are dedicated to providing

2021 Obtained FSSC 22000 certification (Joban Factory)
Quality enhancement

products of the highest value to people by implementing innovative solutions," aiming to contribute to theachievement of a sustainable society by developing, manufacturing, and marketing unique and valuable

2016 Installed membrane separation activated sludge systemproducts based on state-of-the-art organic synthesis. We hope that our shareholders, investors, business2014 Installed co-generation system

partners, local communities, employees, and a wide range of other stakeholders will become aware of ourinitiatives through this CSR report.
In the three-year medium-term business plan that began this fiscal year, we have made the quality culture
strategy the measure of primary importance. We will continue striving to earn your trust by improving ourEnvironmental measures

CO² reductions

2012 ❾ Started manufacture of active pharmaceuticalingredients for generics

2007 Switched to LNG fuel CO² reductions

quality culture, increasing our management efficiency, and contributing to society through business continuity,
based on the philosophy, "It is not only product quality but also the belief and actions of the organization andindividuals that make products and services
satisfactory for customers."
This year, 2023, we achieved a high Silver

1999 Obtained ISO 14001 certification (Joban Factory) Environmental measures1998 Obtained ISO 9001 certification Quality enhancement
1996 ❽ Started manufacture of trifluorothymidine

Medal rating, which is given to companies thatscore within the top 25% of all companies,
in the sustainability assessment by EcoVadis,a French rating provider that evaluates CSRrelated initiatives. We are also actively working
to achieve carbon neutrality, for instance by1985 ❸❹ Started manufacture of organosilicon compounds

following a long-term roadmap to reduce
CO2 emissions. Leveraging our technology
and speed, we will continue taking on new

1978 Installed activated sludge treatment facilities Environmental measureschallenges as a company which provides
products of the highest value to people,
such as continuing to supply to society
products that enable individuals to leadhealthy, prosperous lives and that protect theenvironment.
We look forward to your continued support.

1965 ❼ Started manufacture of protamine sulfate
1964 Started operation of Joban Factory in Iwaki City, Fukushima Prefecture1962 Listed on the Second Section of the Tokyo Stock Exchange (TSE)

October 2023

Seiichiro Matsumoto, President & CEO

1960 ❺ Started manufacture of 2-vinylpyridine
1958 ❷ Started manufacture of beta-alanine

1952 Started manufacture of glycine ❶, and isoniazid ❻1947 YUKI GOSEI KOGYO CO., LTD. was established to produce flavors for tobacco

4 | CSR REPORT 2023

* ❶ ~ ❾ above are linked to "Major YGK products that contribute to SDGs" on the next page.

CSR REPORT 2023 | 5

01Company Profile

Overview of YUKI GOSEI KOGYO CO., LTD. (YGK)

Overview of each product category (FY3/2023)
Amino Acids

Financial position (Million yen)

Specialty Chemicals

Pharmaceuticals

Total assets

6,969

22,11821,172
Property, plantand equipment

Current liabilities

Total assets

Total non-current
liabilities

Current
assetsCurrent
assetsProperty, plantand equipment

11,021 8,821

8,523 10,362

Intangible assets

Net sales

5,017

million yen

Net sales

3,396

million yen

Net sales

4,425

million yen

Sales Trend by Business Segment■ Amino Acids ■ Specialty Chemicals ■ Pharmaceuticals （Million yen）

Medium-term Business Plan 2023
(being formulated)

16,00014,00012,000216

Investments andother assets

274

Non-current
assetsNon-current
assetsInvestments andother assets

11,096 2,000

2,070 10,810

Shareholders'equityCurrent liabilities

22,118 7,803

21,172

Total non-current
liabilities

2,836

Liabilities

Liabilities

10,639

10,168

Shareholders'equity10,307

Valuation andtranslation
adjustments

696

10,776

Valuation andtranslation
adjustments

Net assets

Net assets

11,47811,004702

At end of theprevious fiscal year

End of fiscal year
under review

At end of theprevious fiscal year

End of fiscal year
under review

As of March 31, 2022

As of March 31, 2023

As of March 31, 2022

As of March 31, 2023

Operating results (Million yen)

10,0008,000

Net sales

Net sales

12,83912,361

6,000
4,000

Gross
profitGrossprofit

3,048

2,356

2,000
0

Intangible assets

3,199

Total liabilities
and net assets

Total liabilities
and net assets

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026

413

Major YGK products that contribute to SDGs (Sustainable Development Goals)
Our corporate activities are closely linked to the SDGs. The section below explains how major YGK products
contribute to the SDGs.

Amino Acids

Specialty Chemicals❶ Glycine❸ Hexamethyldisilazane

Glycine is used as a food additive to improve
the shelf life of food products, thereby
helping to reduce food loss. It is also usedin pharmaceuticals as a sleep-promoting
supplement and an irrigating fluid.

Hexamethyldisilazane is used as a surface
treating agent for semiconductor siliconwafers, thereby contributing to economic
growth and industrial development.

❷ β-alanine

β-alanine forms a part of vitamin B (calcium
pantothenate) which is added to petfoods
and is also used as a supplement forincreasing muscle endurance.

Pharmaceuticals❻ Isoniazid(Anti-tuberculosis drug)

Isoniazid is used to treat tuberculosis not onlyin Japan, the United States and Europe but
also in many developing countries, helping
safeguard people's health and livelihoods.
❼ Protamine sulfate❹ Triisopropylsilylacrylate

Triisopropylsilylacrylate is used to makeantifouling boat-bottom paints which are notharmful to marine life, contributing to thegoal of protecting life below water.
❺ 2-Vinylpyridine

2-Vinylpyridine is used in tire cord adhesives,supporting the automobile society andcontributing to a comfortable lifestyle.

(Anti-heparin drug, insulin preparations)Protamine sulfate is a medication that is used toreverse the effects of heparin and is also utilized
as an additive for insulin preparations, protecting
the lives of patients all over the world.

(Antiviral agents, anticancer drugs)

Trifluorothymidine is used as an active ingredientin antiviral agents to treat infections of the eye
and as an active ingredient in anticancer drugs,
safeguarding the health of patients around theworld.

ingredients (APIs) for generics

APIs for generics help reduce patients'
medication costs and improve government
health spending efficiency, helping maintainthe prosperity of society.

Ordinary
profitProfit660

Ordinary
profit556

Profit397

248

Previous fiscal year

Fiscal year under review

From April 1, 2021 to March 31, 2022

From April 1, 2022 to March 31, 2023

Intellectual property
We are focusing our efforts on developing syntheticorganic compounds and their manufacturing methods
and physical properties and we are working toensure that we maintain our business advantage bystrategically applying for and acquiring intellectual
property rights.
Number of patentregistrations

FY2022
Number ofapplications Acquired Pending❽ Trifluorothymidine❾ Active pharmaceutical

6 | CSR REPORT 2023

897
OperatingprofitFiscal Year (As of March 31)

OperatingprofitJapan

Overseas

Patents

5

3

12

18

4

Trademarks

5

5

1

18

2

(Japan and overseas)

WebsiteInvestor relations
information

Click!

All the latest
information about
our company as well
as more detailed
financial information
is available on our
website.
YUKI GOSEI KOGYO Searchhttps://www.yuki-gosei.co.jp/

CSR REPORT 2023 | 7

02Company Management

Corporate ManagementM atters on Functions of Business Execution, Auditing, Oversight, Nomination,
and Compensation Decisions (Overview of Current Corporate Governance System)

Corporate Governance
Basic Views Regarding Corporate GovernanceWe recognize that improving the soundness, efficiency and transparency of management, properly meeting the
expectations of shareholders and other stakeholders, and enhancing corporate value are fundamentals of corporate
governance and a top priority of management.
Our basic policy is to disclose our quarterly financial results and management policies promptly and accurately toshareholders and investors and we will continue increasing corporate transparency in the future.
The basic views and basic policies described above are disclosed on our website.
Basic Views and Policies on Corporate Governancehttps://www.yuki-gosei.co.jp/governance/

Corporate Governance Structure
Form of organization: Company with an Audit & Supervisory Committee

We have also established a Nomination and Compensation Advisory Committee of which the chair and a majorityof the members are outside directors, in order to ensure the independence and objectivity of decisions concerning
nomination and compensation and to strengthen the Board of Directors' oversight function through such decisions.

General Meeting of Shareholders
Appoint/Dismiss

Appoint/Dismiss

Appoint/Dismiss

Reasons for Adoption of Current Corporate Governance System
We adopted the system described in above judging that, under this system, decisions will be made appropriately
and efficiently and there will be effective management oversight.

Board of Directors
Executive
directors

Audit

Audit &
Supervisory Committee"Audit & Supervisory Committee
Members" (including Outside Audit &Supervisory Committee Members)"Directors"

Appoint/Dismiss
Supervision

The Board of Directors consists of directors (excluding directors who are Audit & Supervisory Committee members)
and directors who are Audit & Supervisory Committee Members (of whom a majority are outside directors), and it
meets once a month, in principle, and holds ad hoc meetings as needed.
The Board of Directors makes decisions on matters stipulated by laws and regulations and the Articles ofincorporation as well as important matters stipulated in internal regulations and it also functions as a body thatoversees management in general.
The Audit & Supervisory Committee consists of internal directors who are Audit & Supervisory Committee members
and independent outside directors, and it meets once a month, in principle, and holds ad hoc meetings as needed.
Directors who are Audit & Supervisory Committee Members express opinions as appropriate on the execution ofduties by directors and also hold regular meetings with the Audit Division and Accounting Auditor to exchange
information and opinions with them, with the aim of improving the effectiveness and efficiency of audits through theuse of internal control systems.
Internal audits are conducted by the Audit Division and the status of such internal audits is reported on a regularbasis to the President and the Audit & Supervisory Committee. The Audit Division also liaises closely with the Audit &Supervisory Committee and Accounting Auditor to assess transactions that are deemed to required readjustment or
require prompt action, etc., aiming to conduct audits with reasonable care.

Coordination

Accounting
AuditorCooperation and reporting
Coordination

President& CEO

Reporting

Audit
Division

Risk Management
and Compliance
Committee

Accounting
auditInternal
controlaudit

Internal Control
over Financial
ReportingConfirmation Team
Promoteactivities

Management
meeting(Deliberation on
important matters, etc.)
Officers, etc.
Promoteactivities

ExecuteInternal audits

Internal departments, subsidiaries
Masahiro Kusano,
Director & Managing
Executive Officer
Tatsuya Komatsubara,
Director & Senior
Executive Officer

8 | CSR REPORT 2023

Seiichiro Matsumoto,President & CEO

Naotake Suto,
Director, Full-time
Audit & Supervisory
Committee Member

Keisuke Yamada,Outside Director,
Audit & Supervisory
Committee Member

Norito Ohori,Outside Director,
Audit & Supervisory
Committee Member

CSR REPORT 2023 | 9

02Company Management

Corporate Management

Medium-term Management Plan and Basic Policy

Risk Management

Since our founding in 1947, our executives and employees have worked together based on our corporate
philosophy “We are dedicated to providing products of the highest value to people by implementing
innovative solutions.” In addition, under our Medium-term Business Plan, we are pursuing a basic policy of"continuing to introduce new products while increasing sales of major products in a dramatically changing
operating environment, thus laying the foundations for growth over the coming 10 years" and implementing
the five key measures outlined below.

Our risk management activities include establishing emergency manuals in case of earthquake, fire or flood in light oflessons learned from the Great East Japan Earthquake and the flooding caused by a record-breaking deluge in a shortperiod in 2019, establishing a Business Continuity Plan (BCP) for the purpose of continuing business operations whilst
ensuring the safety of employees and their families, developing large-scale earthquakes countermeasures, climaterelated flood countermeasures, pandemic countermeasures and BCP and providing relevant training on a regular basis.

Key Measures
Key Measures

Basic Policy

Fostering quality culture

Through improvement of the quality culture, speed up businessand contribute to society by means of business continuity.

Enhancement of corporate value

Hone our technological capabilities as an R&D-oriented company
and increase labor productivity through behavioral changes within
the company, aiming to achieve a highly profitable structure.

Business structure reforms in the amino acid field

Advance business structure reforms in the amino acid field tomaintain the leading share in the global market and increase theshare further.

Expansion of contract business in thepharmaceutical field

Earn the trust of customers and increase the number of contracts as
an excellent supplier of APIs and pharmaceutical intermediates thatcan serve the global market.

Expansion and restructuring of specialty chemicals Expand and restructure the field of specialty chemical products
businessthrough new product initiatives.

Basic Policy

1. Recognizing that good corporate compliance is essential for corporate survival, all our officers and employees act
fairly, upholding high ethical standards, and complying with laws and regulations. We also act in a socially sensible
manner, including taking a firm stance against anti-social forces, and exercise integrity in accordance with ourmanagement philosophy and internal regulations. Through such conduct, we endeavor to establish a management
structure which is widely trusted by society.
2. U nder a structure for promoting compliance with the Risk Management & Compliance Committee at its center, we will
strive to establish a corporate culture which is even fairer and more transparent through initiatives such as the revisionof the YGK Group Compliance Manual, enhancement of the "whistleblowing hotline" for compliance-related inquiries
and whistleblowing reports about improper conduct, and the provision of training to raise awareness of compliance.

YGK Group Code of Conduct

 e will aim to act with high ethical standards as members of society and to conduct ourselves professionally at work.
①W② We will aim to develop together with society by conducting ourselves as corporate citizens.
③ We will respect each other's character and values, increase "employee satisfaction" as a company, and strive to

Quality Culture

create a healthy and comfortable working environment.

For us, this refers to an idea that "It is not only product quality but also belief and actions of the organization andindividuals that make products and services satisfactory for customers.

④ We will endeavor to conduct research and development based on outstanding technologies and provide safe,

reliable, high-quality products, to support people's lifestyles and health and wellbeing.

 e will work to promote transparent and sound business activities, aiming to increase our attractiveness as a company.
⑤W

Policy on Human Resource Development and Improvement of Internal Work Environment

Numerical Targets(Million yen)

FY3/2024 (104th term)

FY3/2025 (105th term)

FY3/2026 (106th term)

Net sales

13,50014,00015,000Operating profit

840

1,000

850

Ordinary profit

810

980

830

Profit

600

740

620

ROA

4.2%

4.5%

4.2%

Dialogue with Shareholders and Investors
We publish information about our shareholders' meeting, timely disclosures, IR and news
releases on our website.
Investor relations information
https://www.yuki-gosei.co.jp/ir/

10 | CSR REPORT 2023

Compliance

We believe that fostering a quality culture will enhance our corporate competitiveness and contribute to the realizationof a sustainable society. With the goal of improving business continuity, we will develop human resources under thetheme of "developing human resources so that each individual can think, judge, and act on his or her own," empowering
each individual to work independently on improvement activities. In addition, based on the recognition that ensuring
diversity leads to internal vitality, the Company hires regardless of gender, nationality, or time of year. The Company makes
comprehensive judgments regarding the abilities and aptitudes of these individuals when appointing them to management
positions, and women, non-Japanese, and mid-career hires are also appointed to key positions. Furthermore, by pursuing amore comfortable working environment, we are improving employee engagement and securing a diverse workforce.

Engagement
The following indicators are adopted under the Policy on Human Resource Development and Improvement ofInternal Work Environment.
Retention rate

Percentage of paid leave taken

Ratio of childcare leave taken bymale employees

Percentage ofwomen inmanagerial
positionsTarget: Over 95%
Result (FY2022) : 98%

Target: Over 75%
Result (FY2022) : 84%

Target: 100%Result (FY2022) : 100%

Target: Over 11%
Result (FY2022) : 11%

CSR REPORT 2023 | 11

03

Environment

Environmental Initiatives

Basic Policy

Preventing Air Pollution

We aim to be a "company which coexists with nature and is kind to the planet" in accordance with our basic
management policy concerning quality, safety and the environment.

Reduction of CO2 emissions

In 2007, we replaced the heavy oil boiler used as the heat source for generating steam with an LNG small oncethrough boiler. Moreover, in 2014, we also installed an LNG cogeneration boiler and began generating our own
electricity.

Small once-through boiler
The LNG small once-through boiler, which we upgraded in August 2021, can demonstrate the performance of theprevious boiler at 60% capacity when used in combination with the co-generation boiler.
Moreover, the upgraded boiler allows more optimized operating mode settings and can therefore be expected to be
more effective in saving energy.

Since obtaining certification for our environmental management system (ISO
14001 : 2015) at Joban Factory in 1999, we have been working to reduce theCO2 emissions we produce from our business activities. In recent years, we set
ourselves the target of reducing CO2 emissions (Scope 1 and Scope 2 basedon estimated supply chain emissions) by 50% from FY2006 by FY2030.
We are achieving our CO2 reduction target way ahead of schedule throughinitiatives implemented to date, such as switching from heavy oil to liquefied
natural gas (LNG) and significantly reducing the amount of electricity
purchased by introducing a cogeneration system in 2014. We have continued
pursuing initiatives to reduce CO2; however, we understand that reducing
our CO2 emissions whilst continuing to expand our business operations will
be extremely challenging. As a solution to this problem, we began to use acarbon neutral fuel in 2022, as part of our efforts to reduce CO2.
Going forward, we will work to protect the environment and strive to becomea sustainable company through continued energy saving initiatives.

Liquefied natural gas
We have switched our boiler fuel from heavy oil to liquefied natural gas (LNG), which delivers lower CO 2 emissions
and does not produce sulfur oxides (SOx) and particulate matter (PM).

Co-generation system
We installed an LNG co-generation system which uses sources of heat toproduce and supply electricity and steam, in an effort to reduce emissionsof CO2.

Medium-to-Long-Term Vision

Wastewater incinerator

100%

We upgraded our wastewater incinerator to an incinerator which
generates less particulate matter.

△34%
△50%

FY2022
Results

FY2030Target

752
0%

2006

2022

Types of waste and treatment capacity
Waste oil

Waste alkali

13.56m /day

78t/day3

2030

FY2022 Results
Targets

CO2 emissions

34% reduction(Compared to FY2006)

FY2022 Results

19,196 t

Reduction rate

40.2%
Target achieved

Trend of energy intensity

Changes in CO2 emissions■ Energy consumption (crude oil equivalent (kL))■ Total amount of CO2 generated((tons))

Energy intensity

0.1753* We also consider reducing CO2 emissions by using carbon-neutral LNG.
* Starting this year, we also count CO2 emissions from in-house incineration.

Prevention of Water Pollution
We use an activated sludge treatment system to purify wastewater from ourfactory before discharging it into public water areas.
To increase treatment capacity, we installed a membrane separation typeactivated sludge system (MBR) in March 2016, enabling more reliable
treatment and wastewater management.
Capacity of activated sludge treatment system

8,790

FY2020CO2 per unit

0.15760.1714

2.30

9,770

9,078

19,487

FY2021

FY2022

FY20202.22

21,338FY2021

2.08

19,196FY2022* The figures differ from ones reported last fiscal year because CO2 emissions
from in-house incineration began to be counted this year.

Quantity of treated water

2,400m /day3

12 | CSR REPORT 2023

CSR REPORT 2023 | 13

03

04

Environment

Environmental Initiatives

Reducing Waste Disposal and Conducting Recycling■ Volume of waste generated (tons)

6,598

6,191

6,254

Safety and Health Initiatives

Safety and Disaster Prevention Basic Policy

Treatment of waste oil and alkali waste is performed based on a two-pronged approach: treatment by YGK itself using
its own incinerator and treatment by outside contractors.
Surplus sludge from the activated sludge treatment system is dried and turned into pellets, which are then reused asa valuable resource in the form of sludge fertilizer.
Waste plastics are reused in material recycling and thermal recycling, scrap wood is made into chips, and scrap paper
is recycled.
High-calorie waste oil is reused as a combustion improver (valuable resource).

Reduction of the volume ofindustrial waste generated

Safety and Health

Our basic policy is to "Achieve safe and stable operations" and we implement safety patrols by managers andsafety and disaster prevention drills by factory employees, to achieve this policy.

Trend of recycling of industrial waste■ Recycling rate (%)

29.2

Factory reform activities (safety initiatives)

19.8

17.6

Factory reform activities
FY2020

FY2021

FY2022

FY2020

FY2021

FY2022

At Joban Factory, we conduct all kinds of activities such as QC activities (*1), TPM activities (*2), 5S activities (*3) and
responsible care activities under the collective name of "factory reform activities." These activities consist of six
specialist committees chaired by the head of each department and are used as a tool for achieving our annual factory
activities plan. In addition, through overall optimization activities, we are aiming to achieve our goal of "fostering
quality culture." We have also established a Factory Reform Taskforce to coordinate and oversee all activities andreview activities once every quarter.

Material Flow
INPUT

Products

Energy(Crude oil equivalent)

The Company's plant

9,078 kL

① Factory Reform Committee
The Factory Reform Committee fosters a quality culture (factory reforms) by identifying, solving and sharing
information about problems and risks associated with factory facilities and operations through 5S activities
involving all members.

9,525 t② Safe Environment Committee
The EHS Committee aims to realize a safe, secure and comfortable workplace and to eliminate accidents at workand environmental problems by identifying potential risk factors and making improvements.

OUTPUT

Water

4,675,000 m

Carbon dioxide

319,196 t

Raw materials

32,863 t③ Specialist Maintenance Committee
The Specialist Maintenance Committee is responsible for increasing equipment maintenance awareness andmaintenance skills and preventing losses due to sudden breakdowns and suchlike through periodic maintenancethroughout the lifecycle of equipment and tools.

Waste

6,254 tEffluent

4,668,000 m

3

* Emissions reported under PRTR system 298kg

Environmental Management Systems
To promote safety and environmental initiatives, we establish initiative
targets each year and check and verify their achievement. We utilize ISO
14001 to encourage continuous improvement.

14 | CSR REPORT 2023

④ Operational Improvement Committee
The Operational Improvement Committee reviews operations to completely eliminate loss, and increases
operational efficiency and improves performance to stabilize production.
⑤ Skills Improvement Committee
The Skills Improvement Committee organizes skills improvement training for Joban Factory employees aimed atdeveloping human resources who can think and act independently, establishing a system of training programs,
etc. for "transforming the workplace through the development of human resources."⑥ GMP (*4) Committee
In line with its mandate of "providing products that meet with high levels of customer satisfaction to customers inJapan and overseas," the GMP Committee strengthens corrective measures and preventive measures, aiming forcompliance with international quality assurance standards.
*1 QC activities are activities aimed at improving the quality of products and improving the quality of work.
*2 TPM activities promote management aimed at boosting productivity in manufacturing.
*3 5S activities aim to maintain the quality of the work environment through Seiri, Seiton, Seiso, Seiketsu and Shitsuke (Sort, Set inorder, Shine, Standardize and Sustain).
*4 GMP are standards for manufacturing control and quality control.

CSR REPORT 2023 | 15

04

Safety and Health

Safety and Health Initiatives

Safety and Health

Quality Policy

At Joban Factory, we are dedicated to maintaining safe and stable operations day in, day out, in accordance with the
Joban Factory Safety Policy.

Joban Factory Safety Policy

To realize our basic policy of "continuing to introduce new products
while increasing sales of major products in a dramatically changing
operating environment, thus laying the foundations for growth overthe coming 10 years," we are focusing on the following priority areas.

Basic Policy: Workplace safety management based on a back-to-basics approach
Priority Goal: Achieve zero accidents through daily efforts and responsible behavior① Aiming to improve quality culture

The Safety and Health Committee and the Safe Environment Committee, which forms part of our Factory Reform
activities, play central roles in implementing measures and training related to safety and health.
In safety-related activities, we established a liaison meeting to promote safety and environmental initiatives under
the Safe Environment Committee and we are striving to ensure safety through initiatives such as utilizing near-missinformation submitted by each workplace, making employees more sensitive to danger through hazard prediction
training, addressing risks associated with non-routine work, and providing training for dealing with emergency activities.
We also provide training to increase our employees' sensitivity to danger through the use of outside seminars andsuchlike; however, this training was cancelled in FY2022 due to the COVID crisis.
In safety patrols held once a month, we patrol factory premises to identify any problems or hazards and encourage
employees to implement safety measures.
In health-related activities, we implement measures with particular focus on promoting healthy lifestyles, implementing
and stepping up measures to improve mental health, and measures to prevent overwork.
In addition, every year, during National Safety Week in July and National Industrial Health Week in October , we formulate
plans based on the implementation guidelines and conduct activities aimed at improving workplace safety and health.
However, in FY2022, five lost-time injuries occurred. We used the 5 whys technique to properly investigate the cause andimplement adequate countermeasures to prevent such work accidents from occurring again.
Through activities such as these, we will continue promoting safe and stable operations.

③ Contributing to society by supplying superior products to customers

Lost-time injury
frequency rate

Lost-time injury
severity rate

10.4
3.8
FY2020② Following and complying with laws and regulations

FY2021

FY2022

0.012

2022

FY2020

FY2021national
average⑦ Building trust with customers by reducing deviation and maintaining

safe operation and stable supply

New Product Safety Inspections
We implement new product safety inspections based on domestic and foreign laws and regulations and our own
voluntary standards to ensure the safety of the products we supply to customers. When launching new products, we
conduct stringent inspections covering all aspects including safety data sheets (SDS) and intellectual property rights.

Logistics Safety

0.09
FY20222022

national
average

EHS Initiatives
Our basic environmental philosophy is that"we believe we have a responsibility to society to protect and continuously improve the environment in all
aspects of our business activities and products based on our corporate philosophy “ We are dedicated toproviding products of the highest value to people by implementing innovative solutions.” and we aim to be acompany which "coexists with nature and is friendly to the planet." Every one of us will act responsibly based on
in-depth knowledge of and insights into the environment, economy and society andcontribute to the realization of a sustainable society."
We implement a range of measures to realize this philosophy, including obtaining
ISO14001 certification in 1999. As a result of such activities, in assessments in Sedex/
SMETA audits and EcoVadis, we have been highly rated based on global standards forthe environment, health and ethics. We will continue actively responding to requests
for the provision of EHS-related information and meeting EHS-related auditing
requirements, all of which are likely to increase in the future.

16 | CSR REPORT 2023

⑥ Taking on new business challenges* GHS: The Globally Harmonized System of Classification and Labeling of Chemicals was issued as UN Guidelines in July 2003. GHS
classifies the hazards of chemicals according to certain standards and GHS labelling uses easy to understand pictograms, etc. which
when used to communicate hazards on a label or SDS help to prevent accidents and protect human health and the environment.

5.8
0.113

⑤ Thoroughly implementing the 5S methodology

For all products, we prepare SDS and provide information about hazards required by users. In addition, to ensure
safety and protect the environment during the use and transportation of products, we ensure our products arelabelled with hazard information, emergency measures and GHS aligned labels, and also ensure logistics safety
through the use of yellow cards, thereby fulfilling our social responsibilities as a chemicals manufacturer.

0.438
2.06

④ Deciding who is to do what by when to improve operational efficiency

Logistics Accident Prevention
When a logistics accident occurs, it is mandatory to submit a report and by implementing our own quality assurance
system to investigate the cause of accidents and prevent a recurrence, we endeavor to prevent logistics accidents.
Furthermore, through regular audits focusing on environment and safety, quality assurance and quality control,
conducted in collaboration with logistics companies, we share information and provide training about logistics
accidents.

Basic Principles of Procurement
We carry out responsible procurement activities in accordance with the following basic policies.
1. Fair and equitable procurement of materials
2. Pursuing appropriate prices, quality, and delivery time
3. Open global procurement activities
4. Procurement of materials with consideration for human rights
5. Procurement of environmentally friendly materials
6. Procurement of materials in consideration of occupational health and safety and in compliance with laws andregulations
CSR REPORT 2023 | 17

05

Community

Engagement with Local Communities

Food Loss Initiatives
Striving to eradicate food loss and hunger
Japan generates approximately 6 million tons of food loss a year, 5%(approximately 300,000 tons) of which is said to be generated byconvenience stores (calculated with reference to the Ministry of theEnvironment's summary of information released about the amount of foodwaste generated and its control, etc. at supermarkets and convenience
stores). When added to food products, the glycine we produce can be
expected to extend their shelf life. We will continue striving to solve theproblem of food loss through the development of applications of shelf-life
extending glycine and its stable supply.

Donations
Donations to Japan Anti-Tuberculosis Association
Responsible for making the active pharmaceutical ingredient of antituberculosis agents available to people all over the world since 1952, we
make a donation to the Japan Anti-Tuberculosis Association's doublebarred cross seal campaign every year.

Seal boySponsorship
Support for regional
environmental activities
We support and sponsor on an ongoingbasis the MINYU Environmental Campaign,an environmental plan, and the Fukushima
Sustainal Design aimed at developing asustainable society, which are hosted by
THE FUKUSHIMA MINYU SHIMBUN.
 THE FUKUSHIMA MINYU SHIMBUN, June 3, 2023

Support for regional development
We agree with the vision of Iwaki FC and
are an official sponsor of the club.

Preservation of Regional Natural
Environments
Picking up trash on public roads
We endeavor to keep the public roads
around the Joban Factory, which are also
used by the local children to get to school,clean and presentable.

18 | CSR REPORT 2023

CSR REPORT 2023
Published by: YUKI GOSEI KOGYO CO., LTD.
10-4, Nihonbashi-Ningyocho 3-chome, Chuo-ku, Tokyo 103-0013
Printed using environmentallyfriendly "waterless printing" that
does not produce hazardous
liquid waste.