Lion : All Pages (7.86MB)

LION Integrated Report 2023

Habits have the power to change society. Lion is working for healthy minds and bodies by redesigning habits for more people in more regions and in more aspects of daily living.

Make a difference in everyday lives by redesigning habits

Lion Integrated Report 2023

Contents

Contents

Our Purpose

Our Strategy

Corporate Governance

Performance/Data

1

Our Purpose
Corporate Philosophy	2
Lion at a Glance	3
Creating Habits and Achieving Business Growth	4
Value Creation Process	5
Top-Priority Sustainability Material Issues	6
Our Strategy
Message from the Chairman	7
Message from the President	11
Message from the Director Responsible for Finance....	16
Medium-term Management Plan	19

Accelerate Growth in Four Fields of Value Creation
Business Development Aimed at the Evolution
and Expansion of Habit Redesign	20
Oral Health	21
Infection Control	24
Smart Housework	25
Expansion of the Overseas Business	26
Transforming Our Business Foundations for Growth
Research and Development	29
Intellectual Property	31
Digital Transformation (DX)	32
Supply Chain Management	33

Generating Dynamism to Realize Innovative Change
Human Resource Development	35
Message from the Director Responsible for Sustainability	40
Sustainability: Approach and Management	41
Initiatives to Address the Sustainability Material Issues....	42
Disclosure Based on the TCFD Recommendations	49
Corporate Governance
Messages from External Directors	51
Corporate Governance	53
Compliance	59
Risk Management	60
Leadership Team	62

Performance/Data
Results by Business Segment	64
Consumer Products Business (Japan)	65
Overseas Business	66
Industrial Products Business	67
Financial and Non-Financial Highlights	68
Key Financial Data	69
Key Non-Financial Data	70
External Evaluations and Participation in
External Organizations	71
Corporate Overview and Stock Information	72

Editorial Policy

Lion Integrated Report 2023 is intended to provide Lion's shareholders, investors and other stakeholders with key information about the Company's initiatives for increasing its corporate value over the medium to long term by fulfilling its purpose of "Make a difference in everyday lives by redesigning habits: ReDesign" and facilitating deeper understanding of the Lion Group.

Reporting Period: From January 1 to December 31, 2022 (Some information covers activities in 2023.)

Scope of Report: Lion Corporation and all of its consolidated subsidiaries, in principle.

Note: Where the scope of coverage of reported activities or data differ from the above, a description is provided.

Accounting Standards Applied: International Financial Reporting Standards (IFRS)

Referenced Guidelines:

• International Integrated Reporting Framework issued by the Value Reporting Foundation (VRF)
• Guidance for Integrated Corporate Disclosure and Company-Investor Dialogues for Collaborative Value Creation issued by the Ministry of Economy, Trade and Industry

Regarding Forward-Looking Statements

This report contains forward-looking statements on subjects that include matters related to future business plans, corporate strategies and forecasts of performance. Such statements were formulated based on information that was available at the time of the preparation of this integrated report and contain uncertainties regarding such factors as economic conditions, market trends and foreign currency risks. Actual results may differ from the information presented in these forward-looking statements.

Lion's Disclosure

Financial Information

Non-Financial Information

• Corporate Governance Report

• Securities Report (Japanese only)

Lion Integrated Report

• Lion's Sustainability: SDG-Related

Initiatives (Japanese only)

• Summary of Consolidated Financial

2023

Reports

Statements

• Convocation of the Annual General

Meeting of Shareholders

• LION LETTER business report

(Japanese only)

Investor Relations

Sustainability

Company

Website

https://www.lion.co.jp/en/ir/

https://www.lion.co.jp/en/sustainability/

Lion Integrated Report 2023

Corporate Philosophy

							2
Contents		Our Purpose		Our Strategy	Corporate Governance	Performance/Data

Our purpose reflects our desire to help people achieve healthy minds and bodies and our hopes for a sustainable society.

Our beliefs are the linchpin of our business activities, guiding our daily thoughts, actions and decisions as we strive to put our purpose into practice. The basis of these beliefs is our DNA, which has been handed

down since Lion's founding.

Lion Integrated Report 2023

Lion at a Glance

Contents

Our Purpose

Our Strategy

Corporate Governance

Performance/Data

3

Net Sales and Core Operating Income by Segment

Overseas Business

Lion operates businesses in Southeast and South Asia and Northeast Asia, providing products useful for daily living regardless of culture or language.

Industrial Products			Other Business	Industrial Products
Business				0.9%	Business

Other Business

5.7%

Net Sales by Region

9.7%

15.0%

		Net Sales					Core
						Operating
	¥389.8					Income
				¥23.5
		billion
			Consumer			billion
	(2022)
Overseas		Products	Overseas		(2022)
Business				Business	Business

Consumer

Products

Business

Northeast

Asia

37.2%

Overseas

Net Sales

¥129.3

billion

Lion Corporation (Thailand) Ltd.

Location: Bangkok

Southern Lion Sdn. Bhd.

Lion Corporation (Hong Kong) Ltd.

Location: Hong Kong

Lion Corporation (Korea)

30.3%

59.1%

24.5%

Note: Segment sales figures are external sales, net of intersegment sales and adjustments.

54.8%

Southeast Asia

62.8%

(2022)

Location: Johor Bahru

Location: Seoul

	Consumer Products	In Japan, our Consumer Products Business offers a wide range of products
	Business	and services for total care, from prevention of issues to maintenance and
	ease-of-use, including toothpastes, hand soaps, laundry detergents and
		over-the-counter (OTC) pharmaceuticals.
	Oral Care Products		Beauty Care Products
Toothpastes, toothbrushes, dental rinses, etc.	Hand soaps, body soaps, antiperspirants and
			deodorants, etc.

Lion Kallol Limited

Location: Dhaka

Merap Lion Holding Corporation

Location: Ho Chi Minh City

(Equity method subsidiary from March 2023)

Lion Corporation (Singapore) Pte Ltd.

Location: Singapore

PT. Lion Wings

Location: East Jakarta (Equity method subsidiary)

Lion Daily Necessities Chemicals (Qingdao) Co., Ltd.

Location: Qingdao

Lion Home Products (Taiwan) Co., Ltd.

Location: New Taipei

Fabric Care Products	Living Care Products
Laundry detergents, fabric softeners, laundry	Dishwashing detergents, household cleaners,
bleaches, etc.	food preparation products, etc.

Pharmaceutical Products	Other
Antipyretic analgesics, eye drops, dermatologic	Gifts, pet supplies, etc.
medicines, etc.

Industrial Products Business

Our Industrial Products Business comprises the Chemical Products Business, which handles surfactants, electro-conductive carbon and other chemicals; the Detergents for Institutional Use Business, which sells detergents and hand soaps for hotels and restaurant kitchens; and Other Business.

Chemical Products

Mobility	Electronics	Eco Chemicals	Care Chemicals
• Rubber processing agents	• Electro-conductive carbon	• Concrete admixtures	• Surfactants
• Rubber additive agents	• Pressure-sensitive adhesives		• Cosmetics ingredients

Detergents for Institutional Use

Dishwasher	Alcohol sanitizers	Hand soaps	Vegetable-washing
detergents			detergents

Other Business

In Japan, our subsidiaries are mainly engaged in operations related to Group businesses. The main products and services of this business include construction contracting, real estate management, transport and storage, and temporary staffing.