Kokuyo : INTEGRATED REPORT 2023 （9,270KB）

INTEGRATED REPORT

2023

Introduction

			Creating an exciting future:
		Purpose and
		Kokuyo's
		Future We Imagine		A self-directed, collaborative society
		The purpose we serve in society,

and the future we want to see.

Purpose

Presenting a tomorrow you can't wait for.

We'll have the better future, that follows more creativity and diversity.

By proposing new workstyles and lifestyles, we continually accompany customers that take on their unique challenges.

The future we imagine

• self-directed,collaborative society

We aim for a self-directed, collaborative society, where diverse values are respected and self-realization can lead to contributing others. In this world, everyone feels connected and finds fulfilment in work, learning, and everyday life.

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Introduction

Our Strength From tangibles to intangibles, presenting

This is the strength through which our business fields keep changing with an eye on the next generation, driving our transition from tangibles to intangibles and into an organization that presents a tomorrow you can't wait for.

a tomorrow you can't wait for

From

tangibles...

Our strength

Ever since our foundation, our organization has always boasted three strengths. The first is co-creation with empathy, the ability to empathize with customers' issues and co-create value with customers. The second is our ability to design experiences-in other words, to visualize customers' experiences. The third is our culture of experimentation, in which we keep trying out new ideas, without fear of failure.

Filing cabinet

Western-style ledgers

The passion, will, and experimentalism to forge a brighter tomorrow.

More freedom in work More fun in learning

More abundance in everyday life

The world we aim for is one

...to

intangibles

Our strength reimagined

We leverage our co-creation with empathy, ability to design experiences, and our culture of experimentation to transition from being an organization that makes stationery and furniture into a work and life style company.

Spatial design services

Stationery for

Chinese schoolgirls

in which everyone can lead an exciting and creative life.

Our business activities involve anything connected with people, whether that be stationery making, office design, workplace design, dwelling spaces, circular economy initiatives, or environmental conservation.

We never stop trying out new ideas in a trial-and-error process to present a tomorrow you can't wait for.

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Introduction

Kokuyo's

Going Further toward the "Forest-Like

Business

Strategy

Management Model"

Until now, our business has been focusing on stationery and furniture, that is "one-tree like management".

Going forward, we will take advantage of our culture that has been cultivated our one-tree like business.

We will expand our business domain to workstyle and lifestyle, based on our culture (soil) and aim at portfolio management

through which we produce many businesses (trees).

We call this management style "forest like management". The root of each business (tree) is connected underground and they grow

with the nourishment of Kokuyo's uniqueness. Uniqueness of each employee will lead to becoming a tree, and a big forest in the

end. This growth requires good society and environment. Good forest requires good soil, water and air.

Our growth should never affect society and environment, rather should contribute to society and environment.

With that, we have defined our management issues as materiality that would

allow economy, society and environment to coexist.

Examples of our initiatives

Forest like management is our management, where we take advantage of

Kokuyo's uniqueness and produce many businesses that solve social

Kokuyo won the

issues, coexisting with society and environment.

Material Issue 1

Improve

top prize at Orgatec

Tokyo 2023's Best

Wellbeing

Presentation Award,

Forest-Like

among

which is sponsored

Employees and

Improve wellbeing

Management Model

External

by Elle Decor.

Digital fabrication is

Stakeholders

1. Pitch ideas for new ways of

used in interior design,

Developing businesses in

working

2. Promote diversity, inclusion,

art, and furniture.

two segments

and innovation

Workstyle Field

1

Expand Business

Material Issue 2

HOWS PARK

Fields through

Lifestyle Field

2

the Forest-Like

A pro-diversity

Management

Transition to

Materiality

Model

a management system

office featuring

that creates social value

inclusive design

Actions aligned with

material issues

Material Issue 3

Improve Wellbeing among

KOKUYO

KOKUYO

Employees and External

Stakeholders

OPEN LAB

Respond to the

A series of pilot

climate crisis

Expand Business Fields

projects around the

through the Forest-Like

Material Issue 4

theme of the

Management Model

Safeguard the

digital-oriented

workplace

Planet as a

Safeguard the Planet as

Place for Work

Contribute toward

and Life

a Place for Work and Life

a circular economy

Kaunet

Material Issue 5

Loopa

A recycling service

that collects office

Contribute toward

waste and turns it

into new products

a society that

coexists with nature

A self-directed,

collaborative society

WORK & LIFE STYLE Company

Workstyle Field

Lifestyle Field

New

New

business

Kaunet

business

Domestic

stationery

Domestic

ACTUS

business

B2B

Overseas

furniture

Chinese

wholesales

furniture

business

stationery

business

New

business

business

Asian

New

New

stationery

business

business

New

New

business

Indian

business

business

New

stationery

business

New

business

business

Talent

Platform

for

Capital

Social values,

Data

new

businesses

risks

Entrepreneurial spirit

Vision for 2030

Long-Term Vision CCC 2030

From a stationery and furniture

maker to a good life creator

in the field of working, learning

and living

Financial target

2030

500billion JPY

Non-financial targets

2030 challenging goal

See pages 51 and 52.

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Introduction

Introduction		Vision	Strategy	Governance	Data

Value System

The future we imagine

A self-directed, collaborative society

	Values				Purpose			Vision for 2030
	Co-creation	Presenting	WORK & LIFE
	with empathy
			a tomorrow you	STYLE Company
	Culture of
experimentation		can't wait for.		Shift to
	Designing		the "Forest-Like
	experiences				Management Model"

Our philosophy

Stimulate creativity and celebrate uniqueness.

Message From the Editing Team

CONTENTS

Introduction

1 Kokuyo's Purpose, the Future We Imagine

3 Our Strength

5 Kokuyo's Forest-Like Management Model

7 Value System, Message From the Editing Team

9 Path of Business Growth

11 Business Fields

Vision

15 Message from the CEO

21 Special Dialogue

Strategy

31 Message from the CSO

33 Message from the Managing Officer of CSV Division

35 Progress in Third Medium-Term Plan (Field Expansion 2024)

45 Employee Panel Discussion

Materiality: Key Sustainability Issues

51 List of Material Issues

53 Improve Wellbeing among Employees and External Stakeholders

57 Expand Business Fields through the Forest-Like Management Model

1. Safeguard the Planet as a Place for Work and Life

1. Respond to the Climate Crisis

1. Contribute toward a Circular Economy

Foreword

For the past few years, Kokuyo Group has been undergoing a transformation aimed at achieving our vision for 2030. For example, in 2021, we restated our philosophy, and in 2022 we formulated a statement expressing our corporate purpose. This integrated report, like last year's one, is designed to give our shareholders and other stakeholders a clear idea of how we aim to achieve sustainable corporate development and create value.

•We created a more compelling Value

Creation Story to make our internal

and external stakeholders feel more

convinced and confident.

•In compiling this report, we followed

Japan's Guidance for Collaborative

Value Creation with a view to

enhancing stakeholder dialogue.

•For our actions to address the

material issues, which involve a

long-term perspective, we have

focused on our human capital,

Period to which this report pertains

This report pertains to the fiscal year ended December 31, 2022, but it also includes information that predates or postdates that fiscal year.

Disclaimer on forward-looking statements

This report contains performance forecasts

25 Value Creation Story: Overview

27 Long-Term Vision CCC 2030

69 Contribute toward a Society That Coexists with Nature

Governance

1. Message from an Outside Director

1. Corporate Governance

1. Messages from Executive Officers
2. Meet Our Officers

Integrated Report 2023 reviews Kokuyo's performance in FY2022 and clarifies the issues we need to address. It also describes how we are transforming our businesses in order to achieve our medium-term goals outlined in Field Expansion 2024 (our third medium-term plan) and how we pressing forward with our agenda to shift to the Forest-Like Management Model. With this information, you will understand Kokuyo's current strategic context, including the background leading up to the unveiling of our long-term vision CCC 2030, and the actions we will take in the future to make this vision a reality.

giving many employees a role in

communicating our message.

· This report includes plenty of

interviews with corporate officers,

including the CEO.

· This report gives a voice to the

frontline employees by including an

employee discussion section.

· To offer a stakeholder perspective, this

report includes messages from outside

directors and a dialogue between an

outside director and the CEO.

and other forward-looking statements. Such statements are based on information available and on assumptions considered reasonable at the time of compilation. They should NOT be taken as assurances that the forward-looking statements will prove accurate. Actual results or future events could diverge markedly from forecasts for a variety of reasons.

Data

1. Financial and Non-Financial Highlights

1. Eleven-YearSummary

1. Consolidated Balance Sheets

1. Consolidated Statements of Income
2. Consolidated Statements of Cash Flows
3. Stock Information
4. Corporate Data

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