Review of IT, Financial and Accounting Infrastructure and Enhancement of CSR and Internal Controls

「In the logistics business, to strengthen the transportation of construction materials, we are working on the transportation of plant-related equipment and inter-island transportation between sites in connection with large-scale construction projects on remote islands.」

「The logistics business made capital investments totalling ¥576 million, primarily for system upgrades at the Shinagawa Container Center.」

「The Group formulated a medium-term management plan covering the 3-year period from fiscal 2024 through fiscal 2026, based on the following basic policies: ① “To deploy basic strategies aimed at increasing profits in pursuit of our vision for the future, meet the expectations of stakeholders (shareholders, employees, business partners and local communities), and enhance corporate value by making growth investments”; and ② “To promote ESG management, including addressing materialities, and contribute to the development of a sustainable society.”」

「In addition, to make effective use of management resources and improve capital efficiency, we worked on selling fixed assets, strengthening the organisational structure in connection with the reorganisation of consolidated subsidiaries, and improving operational efficiency through the use of ICT.」

「In particular, as part of ERM (Enterprise Risk Management), the Risk Management Committee requires each department and subsidiary, including the Sustainability Promotion Department, to report annually, using risk identification sheets, on the identification, analysis and assessment of risks and the status of measures taken in response. It then prepares a risk map to understand vulnerabilities relating to risks across the Group, reviews it, and takes action where problems or other issues are identified.」

「Regarding the strengthening of the corporate foundation, we continued to hold various training programmes for employees and worked to strengthen governance and develop human resources' capabilities.」

「The Group established the Sustainability Promotion Department effective 1 April 2022 to promote initiatives to contribute to achieving the SDGs through ESG management, a basic strategy of the current medium-term management plan, Step Up AZUMA2023, aimed at achieving its vision of becoming a company chosen by markets and customers. In addition, to establish sustainability management aimed at creating corporate value, the Group discusses the following matters and others at management meetings as necessary.」

「Regarding the strengthening of the corporate foundation, we continued developing internal infrastructure to promote digital transformation and considering the direction and activities for promoting ESG management.」

「Regarding the strengthening of the corporate foundation, we proceeded with the development of internal infrastructure to promote digital transformation. We also proceeded with considering the direction and activities for promoting ESG management.」

「Regarding the strengthening of the corporate foundation, we began developing internal infrastructure to promote digital transformation. In addition, led by the Sustainability Promotion Department established on 1 April 2022, we considered and formulated measures relating to the promotion of ESG management.」

「In addition, to strongly promote ESG management, we established the Sustainability Promotion Department on 1 April 2022.」

「(1) Strengthening the corporate foundation ・ Rebuilding the Group management structure: Optimising the functions of the Group headquarters and strengthening governance ・ Practising a new way of life: Establishing a work-from-home structure and developing digital infrastructure」

「To strengthen the functions of safety and compliance, which are important to the continuation of the Company's business, we newly established the Planning and Administration Department and the Compliance Supervisory Department.」

「We are implementing measures to enhance corporate value, including rebuilding our information systems, securing diverse talent, optimising pricing, establishing new logistics bases, exploring new businesses and developing overseas logistics services.」

「To ensure the effectiveness and efficiency of operations, the reliability of financial reporting and compliance with laws and regulations, the Company shall establish an internal control system organically integrated with corporate governance and shall continuously improve its existing rules, organisation and operating methods.」

「We will review infrastructure including IT, financial strategies and accounting methods, while further enhancing CSR and internal controls to support the Company's sustainable development.」