YAMAZEN

2022 Integrated Report

April 1, 2021 - March 31, 2022

Together with our stakeholders around the world, the entire Yamazen Group is Pioneering a new

future

The Group currently operates under a four-region system that includes Japan, North America, Europe, and Asia. We have 65 ofces in major industrial cities in 15 countries and regions overseas, where we provide services with a community-based sales system and advanced engineering capabilities.

The Group is committed to pioneering a new future with stakeholders around the world by constantly creating new value through our products and ideas.

01 INTEGRATED REPORT 2022

Purpose

Pioneering a new future, with you all

Nobody knows what the future will hold 100 years from now-that's why Yamazen will keep nding the optimal solutions.

By connecting with the latest business "frontline" information and further rening our "problem-solving skills" and "people skills", we will continue solving new challenges to surpass all barriers.

Not only everyone involved with Yamazen, but also everyone who lives beyond, we have and will continue pioneering a new future, with you all.

Corporate Philosophy

Management of Fostering Personnel

To make active use of personnel, and to foster independent and virtuous employees

Management of Breaking Through

To challenge, innovate and create

Management of Trust

To respond to the needs and expectations of society and contribute to them

YAMAZEN

2022 Integrated Report

April 1, 2021 - March 31, 2022

Cover: About "Pioneer"

This comes from one of Takeo Yamamoto's life lessons: "Destiny is something that you pioneer yourself." This spirit of pioneering-along with the capacity to think and act-are legacies of Takeo Yamamoto that are part of the company's essence. They have been passed on to our employees, and form the foundation of Yamazen's growth today.

INTEGRATED REPORT 2022 02

CONTENTS

A Value Creation Story

Growth Strategy

Business

Portfolio

Our History: Innovation and Creativity

05

Our Business: Business Developing

Through People Challenging Themselves, Thinking, and Acting

07

Issue Awareness and the Process of Value Creation

09

Future World Outlook, Materiality, Vision 2030

11

Interview with CEO

13

Interview with CFO and President of Corporate Administration H.Q.

19

Green Strategy

23

Accelerating ESG and carbon neutral initiatives

Human Resource and Organizational Development Strategies

27

Assembling and training a diverse, Independent and virtuous employees who

challenges themselves and thinks while taking action

IT (DX) Strategies

30

Aiming to maximize customer value by promoting DX strategies that leverage

digital technology

Logistics Strategy

33

Aiming to establish the next generation logistics system: Creation of new value in "logistics"

At a Glance

35

Interview with President of General Sales H.Q.

37

Machine Tools Division H.Q.

39

Industrial Tools & Equipment Division H.Q.

41

Overseas Production Equipment Business

43

Building Materials Division H.Q.

45

Home Products Division H.Q.

47

CROSSING as a Sales Strategy

49

03 INTEGRATED REPORT 2022

Corporate Governance

Data Section

Management Team

51

Corporate Governance System

53

Interview with Outside Director

58

Most Recent 11 Years of Financial Data

59

Non-nancial Highlights

61

Consolidated Financial Statements

63

Organization / List of Overseas Ofces

66

Domestic Group Companies

67

Company Overview / Investor Information

68

Editorial policy

We are issuing this Integrated Report starting with the FY2022 in order to further deepen our stakeholders' understanding of the corporate value and medium- to long-term growth potential of the Yamazen Group. In compiling the report, we referred to the Value Reporting Foundation (VRF)'s "International Integrated Reporting Framework" and "Guidance for Collaborative Value Creation."

Cautionary note concerning forward-looking statements

This Integrated Report contains forward-looking statements regarding the Company's plans, forecasts, strategies, and performance. They contain judgments made based on the information currently available. Please be aware that actual performance may differ substantially from these projections due to a variety of risks and uncertainties. Factors that may affect future prospects include, but are not limited to, the economic environment in which the Company's business operates, competitive pressure, related laws and regulations, changes regarding product development, and uctuating exchange rates.

Note: The content of this Integrated Report is based on the results of FY2021 (April 1, 2021 to March 31, 2022). However, some information from after April 2022 is also included. Factors that may affect future prospects include, but are not limited to, the economic environment in which the Company's business operates, competitive pressure, related laws and regulations, changes regarding product development, and uctuating exchange rates.

Our website contains a variety of information about the Yamazen Group, including "Sustainability" and "Investor Relations." Please refer to it in conjunction with this report.

https://www.yamazen.co.jp/english/

IRCSR

INTEGRATED REPORT 2022 04

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Disclaimer

YAMAZEN Corporation published this content on 14 February 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 21 February 2023 08:59:01 UTC.