AS ONE : Integrated REPORT FYE 3/2021

Integrated Report

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[ Management Philosophy ]

Innovation and Creation

- Forever a company taking on challenges with the frontier spirit -

AS ONE embraces the management philosophy of Innovation and Creation. Under this philosophy, we engage in our never-ending pursuit of change with a positive attitude and a constant desire for improvement.

Our aim is also to achieve something unique, something that has never been

seen before: new products, new value, new systems.

[ Origin of Our Name ]

The phrase "AS ONE" sums up our business model of operating as a unified team made up of many partners. To succeed in a constantly changing market, we walk in stride with our users, dealers, and suppliers towards creating new kinds of value.

1 AS ONE REPORT 2021

Revision Policy

AS ONE publishes this Integrated Report to convey information regarding our initiatives to increase our Group's corporate value to our shareholders and numerous other stakeholders. In this Integrated Report, we outline our value creation process and explain the AS ONE initiatives that turn management capital into value propositions. Our Top Message discusses AS ONE's strengths and our efforts related to sustainable growth.

Scope of application and target period

Target period: FYE 03/2021 (April 1, 2020 to March 31, 2021) Also contains partial report on FYE 03/2022.

Scope of application: AS ONE Group

Also include certain nonconsolidated information for AS ONE.

Referenced Guidelines

International Integrated Reporting Council "International Integrated Reporting Framework"

Ministry of Economy, Trade, and Industry "Guidance for Integrated Corporate Disclosure and Company-Investor Dialogues for Collaborative Value Creation"

Special information on forecasts

This report contains predictions and forecasts related to future plans, strategies, and earnings. Please note that actual earnings may differ from the forecasts indicated in this Report.

Index

About AS ONE

1 Corporate Philosophy and Origin of Our Name

1. Our Growth Trajectory Since 1933

1. Expanding Sales in Each Sector amid the Pandemic

1. Financial and Non-financial Highlights

Value Creation Story

9 Top Message

15 Value Creation Process

17 AS ONE Capital

18 AS ONE Business Model

19 Risks and Opportunities

21 Medium-term Management Plan

23 Progress against Medium-term Management Plan

25 Special Feature 1: e-Commerce

27 Special Feature 2: Overseas Procurement

29 Special Feature 3: Open Innovation

Platform for Supporting Value Creation

31 Approach to ESG

1. Environment

1. Society

1. Social Contributions
2. Directors

1. Message from our Outside Directors

1. Governance

1. Risk Management
2. Compliance

Financial Strategy & Corporate Information

49 Message from our Executive Officer in Charge of Finance

51 Awareness of Status of Corporate Earnings and Details of Analysis and Evaluation

53 Eleven-Year Consolidated Financial Summary

55 Consolidated Financial Statements

59 Stock Information

60 Company Information

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2

Our Growth Trajectory Since 1933

AS ONE was founded in 1933 in Tenma, Osaka as a wholesaler of glass products for the medical industry. In the more than 90 years since then, we have continued to expand our business domains to match changes in the needs of society while also expanding our business globally. As a platform that connects people, things, and services, we will continue to support research and medical institutions.

About AS ONE	Value Creation Story		Platform for Supporting		Financial Strategy &
	Value Creation		Corporate Information

1990 2001 2015

1933 1963

1982

At our dedicated clean room glove factory in the USA

Adopted a companywide online system	Listed in the first sections of the	Launched our medium-term
that was advanced for its time to integrate	Tokyo Stock Exchange and the	management plan "PROJECT NANA"
ordering, inventory management, and	Osaka Securities Exchange.	Aiming for net sales of 70bn yen in
warehouse management systems.	Renamed AS ONE CORPORATION	FYE 03/2021.

Iuchi Seieido Store founded by our	Published "General Research
first president Moriichi Iuchi in	Instrument Catalog No. 1" catalog
'Osaka's glassmaking district.	after recognizing the importance of
		catalogs in sales and the potential
		of plastic components in the
		physical and chemical sectors.
1962	1976	Hit products

Incorporated as Iuchi Seieido Co.,	Published "General Research
Ltd. to engage in the scientific	Instrument Catalog No. 8", which
instruments business.	included metallic instruments,
	paper products, and general
	machinery and represented our
	expansion beyond plastic products.

1933

Started operations

1962

Incorporated as Iuchi Seieido Co., Ltd.

1963

Published General Research Instrument Catalog No. 1

1933

1962

1970

Started sale of clean room gloves; launched full-scale entry into the semiconductor-related product market.

Served as a stepping stone towards engagement in the industrial sector.

1985

Launched "Navis Nursing and Medical Product General Catalog", set to become our next core business, to begin full-scale engagement in hospital and nursing sector.

1985

Published Navis Nursing and Medical

Product General Catalog

1980

1990

1995

Registered on the over-the-counter market of the Japan Securities Dealers Association.

March 2001

Listed on the First Section of the Tokyo Stock Exchange

August 2001

Renamed AS ONE CORPORATION

April 1993

Published first general industrial instruments catalog

November 1995

Registered on the over-the-counter

market of the Japan Securities Dealers Association

December 1999

Listed on the Second

Section of the Tokyo

Stock Exchange

2000

Changed fiscal year

2007

Established AS ONE SHANGHAI CORPORATION in Shanghai, China (100% capital subscription) as our first full-scale overseas sales office.

March 2018

Made Tryumph21 Co., Ltd. a subsidiary

September 2016

Established AS ONE INTERNATIONAL, INC.

April 2007

Established AS ONE SHANGHAI

CORPORATION in Shanghai, China

2010

2020

Started operations at "Smart DC", our new logistics center featuring advanced logistics equipment and functions.

FYE 03/2021 consolidated net sales of

81.6bn yen

2021 (FYE 03/ 2021)

Listed as consolidated figures from FYE 03/2020.

3

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4

Expanding Sales in Each Sector amid the Pandemic

AS ONE continued its trend of record earnings FYE 03/2021, achieving record highs in net sales for an 11th consecutive year, operating profit for a 5th consecutive year, and net income for a 10th consecutive year. In the Scientific sector, sales grew for internet and other EC channels. In the Industrial sector, sales of products for clean rooms were firm.

In the Medical Instruments Division, we recorded significant growth due to demand from medical institutions responding to COVID-19.

Other:	Research and Industrial
Instruments Division:
0.5%					73.7%
Medical Instruments
Division:

25.8%

Industrial sector:	Scientific sector:
18.9%	54.8%

About AS ONE	Value Creation Story		Platform for Supporting		Financial Strategy &
	Value Creation		Corporate Information

General Research

Instrument Catalog

Total of 3,496 pages

Comprehensive catalog for scientific sector featuring approximately 75,700 items. Total support for research lab necessities. Standard catalog for research lab boasting an overwhelming permeation rate.

First issued in 1963, the current edition is the 32nd edition.

SUNQ - ASST Industrial

Research Instrument Catalog

Research and Industrial Instruments

Division

Medical Instruments

Division

General catalog for manufacturing facilities A product lineup, which evolved out of laboratories, is showcased for manufacturing, quality control and development center locations.

First issued in 1993, the current edition is the 16th edition.

Navis Nursing and Medical General Catalog

It provides essential equipment and consumables for medical sites with about 32,500 items.

First issued in 1985, the current editionis the 19th edition.

The scientific sector covers universities, research institutions, and corporate research divisions. During the first emergency declaration, demand slumped temporarily after government measures that included stay-at-home orders. Following the lifting of the emergency declaration, the market shifted towards a recovery trend and we saw strong demand for a wide range of products including analysis equipment, microbe analysis equipment, research equipment, and gloves for clean rooms. As a result, sector net sales grew to 44,745 million yen (up 8.9% YoY).

Scientific Sector

Transitions in Net Sales	+8.9%
(Millions of yen)

50,000					YoY
					44,745
			38,917	41,072
		35,293
	32,355
30,000
0	2017	2018	2019	2020	2021

(FYE 03/2021)

The Industrial sector, which covers mainly manufacturing facilities, also saw a decline in demand during the emergency declaration and demand remained sluggish even after the declaration was lifted due to the slow resumption of production activities. However, from October onward, demand began to recover for clean room products and other product categories. As a result, sector net sales grew to 15,391 million yen (up 1.8% YoY).

Overall, Division net sales were 60,137 million yen (up 7.0% YoY).

Industrial Sector

Transitions in Net Sales	+1.8%
(Millions of yen)
18,000
					YoY
			14,727	15,116	15,391
		13,649
	12,170
12,000
0	2017	2018	2019	2020	2021

(FYE 03/2021)

The Medical Instruments Division, which covers medical institutions and nursing care facilities, saw widespread demand for various products driven by the standardization of COVID-19 measures in medical workplaces. These products ranged from masks, gloves and other infection prevention consumables to non-contact thermometers and other instruments for measuring vital signs, safety cabinets, and medical waste disposal containers.

In Japan, we benefited from achieving rapid and stable procurement in certain areas amid an environment of supply shortages, which led to increased support from our customers.

As a result, Division net sales increased significantly to 21,049 million yen (up 52.8% YoY).

		Transitions in Net Sales	+52.8%
		(Millions of yen)
25,000	YoY
			21,049

	11,421	12,017	12,662	13,779
12,000
0	2017	2018	2019	2020	2021

(FYE 03/2021)

Other: 400 million yen

System usage fees for web purchasing proxy service by Tryumph21.

SANIFOODS Food	AS TOOL Catalog	NAVIS Nursing
Inspection and	of Products for	Facility Catalog
Sanitary Management	Factories
Product Catalog

Laboratory	ASSRE Research	ASPURE Clean
Catalog	Systems Catalog	Environment and
		Anti-Static
		Catalog

Chinese-language	AXEL	AXEL_GLOBAL
catalog for research
and industrial products

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Financial Highlights

About AS ONE	Value Creation Story		Platform for Supporting		Financial Strategy &
	Value Creation		Corporate Information

Non-Financial Highlights

*Nonconsolidated figures.

Net Sales

81,606 million yen

(Millions of yen) 100,000

					81,606
		60,959	66,733	70,389
	55,947
50,000
0	2017	2018	2019	2020	2021

(FYE 03/2021)

Operating Profit/ Operating Profit Margin

	9,891	million				%
	yen
			12.1
(Millions of yen)							9,891	(%)
10,000								20
					8,550
				7,562
	6,093	6,596		11.3		12.1	12.1
5,000	10.9	10.8						10
0	2017		2018	2019	2020	2021	0

(FYE 03/2021)

Total Assets

					million
		94,225 yen
(Millions of yen)
100,000					94,225
	70,986	77,831	78,773	81,520
50,000
0	2017	2018	2019	2020	2021

(FYE 03/2021)

CO2 Emissions	Waste Volume
(Scopes 1 and 2)	(Osaka)
1,071.20 tons	24.6 tons

(tons)				(tons)
1,500		1,356.03		50
	1,302.91
				40.6
			1,071.20
						26.8	30.6	27.4
							24.6
750				25
0	2019	2020	2021	0	2017	2018	2019	2020	2021
			(FYE 03/2021)						(FYE 03/2021)

Waste Recycling Rate

(Osaka)

83%

(%)

100

79

80

79

81

83

50

0	2017	2018	2019	2020	2021

(FYE 03/2021)

Shareholders' Equity/
Shareholders' Equity Ratio
			million	66.5%
62,761yen
(Millions of yen)								(%)
70,000						62,761	100
50,169	52,467	53,252	56,493
70.6	67.0	67.5	69.2	66.5

Return on Equity	10.1
(ROE)
		%
Return on Assets	6.8%
(ROA)
(%)			ROE		ROA
15

		10.0	10.9	10.1
10	8.5	9.2
		7.4
			6.8

Free Cash Flow

3,268 million yen

(Millions of yen) 6,000

4,601

3,672

3,268

Ratio of Female Managers

4.9%

FYE 03/2025 goal 10.0%

(%)	4.9
5.0

Rate of Paid Leave Use

46.8 %

FYE 03/2025 goal 60.0%

(%)

80

		54.1	59.0
48.9	50.1	46.8

Ratio of Mid-career Hires
for Management Personnel 54.2
	%
Ratio of Personnel	12.5%
Under Age 45

Utilization of diverse personnel

1. Ratio of mid-career hires

80		Ratio of personnel under age 45

50.0	52.4	52.4	50.0	54.2

35,000						50
0						0
2017	2018	2019	2020	2021

(FYE 03/2021)

6.0	6.3	6.7
5

0

2017 2018 2019 2020 2021

(FYE 03/2021)

3,000
						1,809
		1,199
0
2017				2019				2021
	2018	2020

(FYE 03/2021)

2.5

0

	1.6
0.9	1.5
0.8

2017 2018 2019 2020 2021

(FYE 03/2021)

40

0

2017 2018 2019 2020 2021

(FYE 03/2021)

40

0

	9.5	9.5	12.5
6.3	5.0

2017 2018 2019 2020 2021

(FYE 03/2021)

Net Assets per Share/PBR

3,358.63 yen 4.1times

(Yen)					(Times)
4,000						6
				3,358.63
	2,637.91	2,810.73	2,852.74 3,026.35	4.1
2,000			3.1	3.1		3
		2.4
	1.8
0	2017	2018	2019	2020	2021	0

(FYE 03/2021)

Net Income per Share/PER

320.57yen 43.4 times

(Yen)								(Times)
400									60
					319.60	320.57
		249.06	282.00				43.4
	220.89
200		27.2	31.2	29.8		30
	21.8
0	2017	2018	2019	2020	2021	0

(FYE 03/2021)

Dividend per Share/ Dividend Payout Ratio

			161yen 50.2%
(Yen)										(%)
200										100
							160		161
			125		141
	110
100								50.2
49.8	50.2	50.0	50.1		50
0	2017	2018	2019	2020	2021	0

(FYE 03/2021)

Rate of Turnover After 3.1

Three Years of Hire %

Total Rate of Turnover 4.0%

Extremely low relative to the 30% for college graduates after three years since hiring (MHLW research on companies of similar size)

(%)		Three-year		Company overall
8

4.4			5.0
	3.9		4.0
4	3.5
3.2	3.2	3.4	3.4	3.1

0

2017 2018 2019 2020 2021

(FYE 03/2021)

Paper Use

14,904Kg

Results of promoting workflow digitization

(Kg)
30,000
	25,306	23,000	23,362
		22,154
15,000					14,904
0	2017	2018	2019	2020	2021

(FYE 03/2021)

Number of RPA Robots and Time Reduction

309units 3,266hours

Using robots where task automation is possible

(time)	(units)
4,000	400

3,266

309

2,000	1,834	187	200

709

46

0				0
2019	2020	2021

(FYE 03/2021)

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