SANGETSU : REPORT 2022 A4-sized

SANGETSU REPORT 2022

SANGETSU Integrated Report

Aiming to be "A Space Creation Company"

We create new value for society by envisioning a relationship between people and spaces founded in design and creativity.

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Corporate Philosophy

Sangetsu's corporate philosophy consists of: Company Creed,

representing the timeless and unchanging spirit of Sangetsu since its founding;

the Corporate Mission; and our Brand Concept.

Company Creed

Sincerity

Realizing what people expect with Sincerity is the starting point of our business.

Sincerity is everlasting and unchanging Sangetsu original spirit.

Corporate Mission

To contribute to society through interior design and strive to create a daily

culture of enrichment.

Brand Concept

We share the joy of design with those who create new space.

• SANGETSU REPORT 2022 Editorial Policy

The SANGETSU REPORT is an integrated report that has been published annually since 2015 to facilitate San- getsu stakeholders' understanding of the Sangetsu Group's corporate value and medium to long-term growth potential. The 2022 report describes our activities to become a Space Creation Company and includes enhanced financial and non-financial information based on the opinions of our stakeholders referred to in our interviews of persons both inside and outside the company. In the editing process, we used the International Integrated Reporting Framework published by the International Integrated Reporting Council (IIRC) as a reference. We sincerely hope that this report will help more people understand the Sangetsu Group.

• Overviews of Corporate Communication and Role of the Integrated Report

Financial Information

Non-financial Information

Stake-

● Financial results briefings

● Facility tours for institutional investors

● Meetings with institutional investors

● Meetings between institutional investors

holder

● IR events for individual investors

and outside directors

Dialogue

● General meetings of shareholders

● Company briefings for shareholders

● Financial summary

● SANGETSU

REPORT

● Corporate

reports

● Quarterly reports

Integrated report

governance

Reports

report

● Securities reports

combining

● Environmental

● Interim reports

financial and

non-financial

report

SANGETSU

REPORT 2022

information

WEB

Investor Relations website

Sustainability website

www.sangetsu.co.jp/

www.sangetsu.co.jp/english/

english/ir/

sustainability/

02 SANGETSU REPORT 2022

Gomez	The 2022 Certified Health
IR Site Ranking 2021 Silver	& Productivity Management
Prize Awards	Organization Recognition
	Program
	(large enterprise category)

S&P/JPX Carbon	FTSE Blossom Japan
Efficient Index	Japan Sector Relative Index
2022 CONSISTENT MSCIj Japan		2022 CONSISTENT MSCIj Japan
ESG Select Leaders Index		Empowering Women Index

The use of MSCI Indexes, logos, trademarks, service brand logos, and index names in this report does not indicate an endorsement, recommendations, or promotion from Sangetsu for MSCI or its affiliate companies.

MSCI indexes are the exclusive property of MSCI. The names and logos of MSCI and MSCI indexes are the trademarks or service brand logos of MSCI or its affiliate companies.

Compliance with the Accounting Standard for Revenue Recognition

Sangetsu has followed the Accounting Standard for Revenue Recognition (ASBJ Statement No. 29 Accounting Standard for Revenue Recognition [March 31, 2020]) since the beginning of the fiscal year ended March 31, 2022. Therefore, data provided for the fiscal year ended March 31, 2022 uses figures after adopting this accounting standard.

Cautionary Statement with Respect to Forward-Looking Statements

All statements, including forward-looking statements, other than historical facts in this report are based on fore- casts, expectations, assumptions, plans, understanding, evaluation, and other matters and are prepared using the information available to the Sangetsu Group as of July 31, 2022. To calculate quantitative forecasts, a certain set of assumptions essential in forecasting is also used in addition to facts that have been confirmed and accurately understood in the past.

Scope of Reporting  Sangetsu Corporation and its Group

companies

Period Covered  April 1, 2021 to March 31, 2022

* Includes some activities after the reporting period

Date of Publication  August 2022

INDEX

About the Sangetsu Group

02 Corporate Philosophy

04 170-year History of Creating Value

Message from CEO

06 Message from CEO

12 Financial Strategies

Story of the Sangetsu Group

14 Story of Value Creation

16 Value Creation Process

18 Approach to Value Creation

22 Medium-term Business Plan (2020-2022)

24 ESG

1. ESG Management

1. Board of Directors

1. G: Governance
   28 Corporate Governance
   31 Round Table of Outside Directors
   34 Compliance
   35 Risk Management

S: Social

36 Human Resource Management

1. Human Rights and Diverse Work Styles

1. Supply Chain Management

1. Community Involvement

1. Environment

1. Safeguarding the Global Environment

48 Business Strategy

1. Interior Segment

1. Exterior Segment
2. Space Creation Segment
3. Overseas Segment

1. Business Topics

Data Section

56 10 Year Consolidated Financial Summary

1. Financial Highlights
2. Non-financialHighlights
3. ESG Data
4. Corporate Profile/Share Information

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