Paltac : Integrated Report 2021 “WHAT'S PALTAC”

Integrated Report 2021

PALTAC CORPORATION

Contents

WHAT'S PALTAC

05 PALTAC MIND

1. Business Overview

1. Chairman's Message

10 President's Message

14 PALTAC History

24 Financial and Non-financial highlights

PALTAC's Value Creation

1. Materiality (material issues)

1. Value Creation Process

PALTAC's Value Foundation

1. Management Team

1. Corporate Governance

1. CSR Management

Corporate Data

1. Financial Highlights (Eleven-Year)

1. ESG Highlights (Three-Year)
2. Corporate / Stock Information
3. Editor's notes

32 Medium-term Management Plan VISION 2024

Editorial Policy

1. Strengthening retail solution capabilities

1. Strengthening logistics solution capabilities

1. Enhancing IT system and Promoting digitization

This integrated report is intended to intelligibly convey the "value creation" for our sustainable growth and the "strengths" for realizing our value creation to stakeholders through it describes our history, corporate culture, and our approach to distribution.

1. Developing talent and organization

1. Harmonizing the environment

1. Financial capital

Note Concerning Forward-Looking Statements

Reference Guidelines

We have referred to the International Integrated Reporting Framework of the International Integrated Reporting Council (IIRC) and the Integrated Disclosure and Dialogue Guidance for Value Collaboration advocated by the Ministry of Economy, Trade and Industry.

Information in this document presented by PALTAC CORPORATION (the "Company") contains forward-looking statements regarding to the Company.

Other than historical facts, these forecasts and strategies prepared under certain assumptions, and such matters include certain risks and uncertainties. As such, please be forewarned that actual results may not necessarily match these forecasts due to a variety of changes in the business environment and others causes. Please also note that even in cases where it might be desirable for the forecast information to be updated or revised due to new information, future events or other items. The Company is not obliged, and dose not have a policy of updating this document and information to the most recent.

PALTAC CORPORATION INTEGRATED REPORT 2021

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WHAT'S PALTAC		PALTAC's Value Creation		PALTAC's Value Foundation		Corporate Data

WHAT'S PALTAC

1. PALTAC MIND
2. Business Overview

1. Chairman's Message

10 President's Message

14 PALTAC History

24 Financial and Non-financial highlights

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PALTAC CORPORATION INTEGRATED REPORT 2021

PALTAC CORPORATION INTEGRATED REPORT 2021

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"Unchanged MIND"

Moving forward

since

foundation

123years

ＰＡＬＴＡＣ ＭＩＮＤ

Our DNA

Honesty and Trust

Our Aim

We would like to strive to contribute to customer's prosperity and to create people's rich and comfortable daily lives through distribution

Our Policy

We always respect harmony with people and act with a sense of gratitude and humility

We tenaciously take on the challenge of transformation by leveraging creativity, breakthrough technology and rapid decision-making

We fulfill a role through forming collaboration, making correct decisions and acting responsibly

Corporate Slogan

Maximizing customer satisfaction and minimizing distribution costs

"PALTAC MIND" is our "philosophy" which is shared by every employee and the starting point of our actions to continue to provide new value as a company that supports social infrastructure of supply chain while keeping pace with the rapid change of society.

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PALTAC CORPORATION INTEGRATED REPORT 2021

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Feeling a deep sense of our mission

Supporting "usual daily lives"

Yearlyrly shipmentsi ts

3.5 billionproductsilli r ts

We supply 30 products per person for one year in Japan

Reducing costs of the entire supply chain

through the intermediate distribution function

No wholesaler			Wholesaler exists
Optimization and
streamlining of the entire			Reduce the number
supply chain are realized by			of transactions and
		costs
wholesaler's collection and
dispersion role at the mid-
point, and consequently
contribute to social costs			ＰＡＬＴＡＣ
reduction and to products
delivery to consumers at
stable prices.
Manufacturer	Retailer	Manufacturer	Retailer

We would like to strive to contribute to customer's

prosperity and to create people's rich and comfortable daily lives through distribution

Optimizing and streamlining entire supply chain through our intermediate distribution functions

Manufacturer

PALTAC

Retailer

1,000 companies 50,000 Items

400 companies 50,000 stores

PALTAC is an intermediate distributor that handles daily necessities related to "health and beauty". Our mission is to deliver products to retailers in a stable and efficient way in a normal condition and even in an emergency with the aim to support "usual daily lives" in which people can obtain products that will enrich their daily lives "at any time" and "affordably".

We provide retail solution including provision both effective information and sales proposals ranging from "products assortments" at stores to "store support" such as product displays based on the information analysis of sales data and market trends, as well as high-quality,low-cost logistics solution that realizes efficient distribution processes and store operations.

In addition to these solutions as above-mentioned, through our own information technology (IT) enterprise system that supports foundation of these solutions, we pursue optimization and streamlining of the entire supply chain from manufacturers to retailers and thus to consumers.

Supplying products that are closely related

people's daily lives

Cosmetics	Daily necessities	OTC	Health and sanitary
pharmaceuticals	related products
Shampoo / Hair color /	Laundry detergent /	Cold remedy / headache	Baby products /
dishwashing detergent /	medicine / skin disease
Facial cleanser /	supplements / functional
toothbrush / toothpaste /	remedy / vitamins /
Cleansing agent / Skin	foods, beverages /
soap / household papers	gastrointestinal drug /
lotion / Sheet mask /	masks / disinfectants /
/ food wrap / razor /	lifestyle drugs / eye
Men's cosmetics /	nursing care products /
feminine care /	drops / antiphlogistic
Deodorant / Lip balm /	contact care products,
insecticide / disposable	sedative drug for
Makeup etc.	etc.
warmer etc.	external use, etc.

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