SOTOH CO.,LTD.

The SOTO Group operates three core businesses: textile dyeing and processing, product sales, and real estate. Through an organizational structure that includes 6 consolidated subsidiaries, it dyes, processes, manufactures and sells textile products and leases real estate. Its dyeing and processing business serves high-end fashion apparel, focusing on wool and blended materials and including functional treatments such as napping, lustre finishing, water repellency and washability, with the aim of increasing the value added to materials. The product sales business plans, manufactures and sells materials and products. The real estate business leases stores and land to mass retailers and other tenants. Its consolidated subsidiaries include ソトー商事株式会社, which purchases materials and other items, and ソトー興産株式会社, which is subcontracted to perform part of the dyeing and processing work. The reportable segments are Dyeing and Processing, Product Sales and Real Estate, and are the same as the segment classifications in “Part 5: Accounting Information, 1. Consolidated Financial Statements, Notes.” Going forward, the Group plans to respond to changes in the business environment, strengthen coordination between its dyeing and processing and product sales businesses, and expand value added by strengthening direct sales of original products. The medium- to long-term operating environment is affected by the challenging order environment for wool-based materials, the risk of higher raw material and energy prices, trends in inventory and production to forecast, intensifying competition among production centers, and risks related to overseas sourcing of raw materials and logistics. Its sustainability initiatives include promoting the SDGs, measures to combat global warming, water resource management, reducing chemical use, promoting eco-processing, health management for employees and women's participation in the workforce.